Ending 72T distribution
L1: Ending 72T distribution
I received 72T distributions from 2007 to 2011. Am I free to do as I wish with my IRA now? I was turning 57 in 2007 and I am turning 62 in 2012. I have satisfied my five years of equal periodic distributions during the worst of the market. Can I now
stop taking distributions?
2012-01-04 14:13, By: bajxrbv, IP: [18.104.22.168]
L2: Ending 72T distribution
What was the date of your 1st distribution in 2007 ? You must wait until the month following the 5 year anniversary of that first distribution before “modifying/terminating” your plan after age 59 1/2.
2012-01-04 17:49, By: dlzalles, IP: [22.214.171.124]
L3: Ending 72T distribution
I took distribution from 1/07 through 12/11.
2012-01-04 21:02, By: bajxrbv, IP: [126.96.36.199]
L4: Ending 72T distribution
I do believe that he was asking for the date (MM/DD/YYYY) of the 1st distribution and not the month and year of the first distribution. The ending date depends on the starting date, not the starting month and year.
2012-01-04 21:06, By: Gfw, IP: [188.8.131.52]
L5: Ending 72T distribution
In any event, you can and should stop your distributions as of 12/31/2011. Your plan will end sometime this month, 5 years plus a couple days for safety margin after the date of your first distribution in Jan, 2007.
DO NOT take any IRA distributions until after the exact termination date of your plan, preferably not until Feb, 2012.
Also, if you get a 1099R for 2011 coded 7, do not file a 5329 to change it. Only file the 5329 if the code is 1 and you did NOT bust the plan in 2011.
2012-01-04 21:23, By: Alan S., IP: [184.108.40.206]
L6: Ending 72T distribution
My first distribution was 1/1/2007 and my last distribution was 12/1/2011.
2012-01-04 22:19, By: bajxrbv, IP: [220.127.116.11]
L7: Ending 72T distribution
The 5-year period ended on December 31 plus 1 day makes January 1, 2012 the first modification date. I’m guessing that you took monthly distributions and that you took a total of 60 monthly withdrawals (or 5 annual withdrawals) while the plan existed. Congratulations,
your SEPP plan is over.
2012-01-04 22:28, By: Gfw, IP: [18.104.22.168]
L8: Ending 72T distribution
Thanks for all the input.
2012-01-05 14:00, By: bajxrbv, IP: [22.214.171.124]
L9: Ending 72T distribution
It would not change the recommendation, but there could not have been a distribution made on New Years Day. For 72t plan purposes, the start of a plan is based on theDISTRIBUTION date, not the received date.
Therefore, the distribution date had to be after 1/1/07 or your plan would have started in 12/06 and you would have received a 2006 1099R for a December distribution.
Initiating a plan in the final week of the year presents several risks of problems including you would not know exactly which year or month your planactually starteduntil you checked with the custodian, and the first 1099R
would be an indication of that.
Either way, it does not change the recommendation to take nothing out this month, unless you are totally sure of the date of the first distribution.
2012-01-06 02:18, By: Alan S., IP: [126.96.36.199]