Help! Repost from Email

L1: Help! Repost from EmailThanks so much for your site, it is a source of comfort in today’s uncertainty.Ok, here is my dilemma, I was pretty naive, I went along with what ever my planner set up for me in year 2000. it was just a estimate of what I could withdraw from my ira on a yearly basis. well it apparently was too much so now I am in danger of going bust in 3 yrs, if I don’t lose anymore and continue withdrawing.my broker has passed away and I now have my money at a discount brokerage.here are my questions, -how does the irs know which program I am following?I don’t remember signing something saying I am taking 72t on annuity or amortization etc.?-also, it seems like this situation is a catch 22, if I stop taking withdrawals, I break the plan and owe penalties, etc, which will equal more than my balance, if I keep taking withdrawals I run out before 59 1/2 , what’s a dumb dumb like me to do??2002-09-13 05:35, By: Brenda, IP: [127.0.0.1]
L2: Help! Repost from EmailHow does the IRS know? They don’t. They merely review how the 1099R is coded [see the Scenario (not our client)] post below.The one thing that I’d like to point out is that when dealing with 72(t) there is no such thing as an estimate, there is an exact calculation procedure that must be followed. Most calculation methods produce a level payment that will be disbursed to the IRA owner one or ore times during the year.I would start with our calculators and the interest rates that were applicable when you started the program – are the payments even close to the amount that you have been taking out? If not, you may not even have a SEPP plan and if it (or the 1099R filed by the IRA Trustee/Custodian) get viewed by the IRS, you may be in a position where you’ll end up paying the penalties. I would definitely schedule a meeting with your current tax advisor and get the benefit of his/her advice.2002-09-13 05:52, By: Gfw, IP: [127.0.0.1]