exceptions on 10% for “Qualified Public Safety Employees”
L1: exceptions on 10% for “Qualified Public Safety Employees”
I am an Air Traffic Controller retiring at age 51 on 12/31/11. I read on the IRS website
That “Qualified Public Safety Employees” are an exception to the 59 1/1 rule.
Here is the exact quote:
Exceptions: There are several exceptions to the age 59_ rule. Even if individuals receive a distribution before they are age 59_, they may not have to pay the 10% additional tax if they are in one of the following situations.
They receive a distribution from a retirement plan (other than an IRA) after leaving a job and are age 55 (age 50 for qualified public safety employees).
Does this mean I need to setup a monthly payment plan based on life expectancy to continue until my 59th BDay, or….the way I read it, I can set it up anyway I want, as long as I am at least 50 and I am a “Qualified Public Safety Employee”….
So where is the defination of “Qualified Public Safety Employee”?
2011-08-04 15:30, By: atctina, IP: [22.214.171.124]
L2: exceptions on 10% for “Qualified Public Safety Employees”
Check out this link…http://www.irs.gov/irb/2007-05_IRB/ar11.html- look for Questions 6 & 7.
Q-6. Who is a qualified public safety employee?
A-6. For purposes of 72(t)(10), the term qualified public safety employeeÛ means an employee of a State or of a political subdivision of a State (such as a county or city) whose principal duties
include services requiring specialized training in the area of police protection, firefighting services, or emergency medical services for any area within the jurisdiction of the State or the political subdivision of the State.
Q-7. How does a qualified public safety employee qualify for the exception to the 10% additional tax under 72(t)(10)?
A-7. In order to qualify for the exception to the 10% additional tax under 72(t)(10), a qualified public safety employee (i) must have received the distribution from a governmental defined benefit
plan after separating from service with the employer maintaining the plan and (ii) the separation from service must have occurred during or after the calendar year in which the qualified public safety employee attained age 50. For example, a qualified public
safety employee who separated from service on June30,2006, and attained age 50 on December 12, 2006, is eligible for the exception under 72(t)(10) with respect to distributions made after August 17, 2006.
2011-08-04 15:40, By: Gfw, IP: [126.96.36.199]
L3: exceptions on 10% for “Qualified Public Safety Employees”
I would ask your Air Traffic Controllers’ Union if you qualify under this provision. If they say no, or do not know, I would check with the IRS office of Legal Counsel. Your profession should be the same as the reason for the other professions qualifying,
“limited job length, and the pressures of the job” for the public’s benefit. I think that forest rangers, for example, should also be qualified. The wording of the provision above seems to be limited to state or local employees, and for some reason federal
employees are not mentioned. It might take an ” Act of Congress” to get the federal employees to be qualified as well. If so, contact your Congresspersons.
2011-08-04 16:38, By: dlzallestaxes, IP: [188.8.131.52]
L4: exceptions on 10% for “Qualified Public Safety Employees”
Also note that the age 50 exception only applies to defined benefit plans, not to defined contribution plans.
2011-08-04 19:12, By: Alan S., IP: [184.108.40.206]