Final Distribution Date
L1: Final Distribution DateI plan on starting a 72t in 2013.
My DOB is 4/1/60.
I plan on taking my distributions at the end of the year. First Distribution will
be in Dec-2013.
From the calculators I need to take 7 yearly distributions from 2013 to 2019.
Since my first modification date is 10/2/2019, do I need to take my final distribution
in 2019 prior to that date or can it occur at the end of the year as all my prior distributions?
2012-12-01 13:19, By: mojo, IP: [126.96.36.199]
L2: Final Distribution DateAs things stand now, you will have 3 options in 2019 PRIOR to the modification date:
1) Take nothing
2) Take a pro rated distribution of 9/12 of your annual distribution
3) Take your full annual amount
IRS guidance on 72t plans occasionally changes, so you should certainly check into this same question again around the start of 2019.
After the mod date, you can take out as much or as little as you wish.
2012-12-01 17:17, By: Alan S, IP: [188.8.131.52]
L3: Final Distribution DateThank you for the reply, but I’m confused with option 1.
Won’t I be required to take a distribution in 2019?2012-12-02 11:17, By: mojo, IP: [184.108.40.206]
L4: Final Distribution DateThe plan ends on the day after you turn age 59.5. There is no requirement that a distribution be taken at any time prior to the December 31 date.
Since you will be over age 59.5 on December 31, 2019, effectively there is no need to take a distribution in that final year.
Hope this helps.2012-12-02 12:10, By: Gfw, IP: [220.127.116.11]
L5: Final Distribution DateThe requirement is 5-years of distributions AND actually reaching age 59.5.
The 5-years of distibutions requirement will be completed long before the age 59.5 requirement is reached. Therefore you have the option of not taking a distribution in the final year which is Item 1 on Alan’s list.
Jim F2012-12-03 16:30, By: Jim F, IP: [18.104.22.168]