EX financial advisor

L1: EX financial advisorMy wifes financial advisor recommended her to take a 72T distribution for five years (she was 41 then, recent widow). the five years ended about 6months ago. She was looking at discontinuing the distribution to try and leave the money in the annuity.
Her advisor recently admitted to her on the phone that she was wrong back then and informed her of the “longer of five payment years (from the date of the first distribution) or until age 59-1/2.”
What would the penalties be if we cancelled the distribution, 10% of all mones so far distibuted, or can the payments be lowered. Is there a minimum distribution?2005-08-25 15:39, By: john, IP: [66.100.35.85]

L2: EX financial advisorSee if she can get this admission in writing. Then have an attorney contact the advisor”s firm (branch manager or higher) to determine if they will compensate the client for the penalty of 10% of the cumulative distributions already taken, and any on the balance if withdrawn now. Let them come up with alternative solutions, and make them squirm a lot !!!
There are some special provisions for a 1-time change to a different method, which might lower the annual amounts, especially if the account has declined in value. Maybe an exchange to a different annuity or other investment might lower the value or figures. I”m not an expert on that aspect of this touchy situation.2005-08-25 15:52, By: dlztaxes, IP: [4.175.9.83]

L2: EX financial advisorThe penalty is 10% on all previous withdrawals plus interest on the past due penalties. She could switch to the Minimum Distribution method and use the Uniform Table for life expectancy calculations – that should minimize any future withdrawals.
While she may not be able to leave the funds in the annuity, she could reinvest the future withdrawals in a mutual fund or other investment.
If you know the age and approximate balance you can get an estimate from the calculators.
Good luck.
2005-08-25 16:00, By: Gfw, IP: [172.16.1.72]