If you begin 72t withdrawals from an IRA, can you take additional distributions
L1: If you begin 72t withdrawals from an IRA, can you take additional distributions
Im retired I started 72t apr 14 , later in year I took two more withdrawls. I have no problem paying the extra 10 % on those withdrawals . Can I continue to not pay the 10% on my 72t intialwithdrawl from apr of 14 and take that withdrawal again in apr of 152015-01-23 13:59, By: lArry, IP: [184.108.40.206]
L2: If you begin 72t withdrawals from an IRA, can you take additional distributionsYour plan was busted as soon as your 2014 total distributions exceeded your annual calculation, or pro rated annual if you chose to pro rate and distribute 9/12 of your annual calculation. As such, you should just pay the penalty on the entire amount on your 2014 return and start a new plan this year after becoming more familiar with the planning aspects of a 72t.
That said, there could be an exception if the additional withdrawals were to pay for expenses that are also excepted from the penalty (eg higher education, high medical costs etc). This was allowed by the IRS in the Benz PLR, but is far from certain without your own PLR, which is very expensive.
What triggered the need for the additional distributions? I assume there is only one IRA account involved here, so please advise if there are more than one.
2015-01-23 16:55, By: Alan S, IP: [220.127.116.11]
L3: If you begin 72t withdrawals from an IRA, can you take additional distributionsGive us your details, in case we can help you avoid the penalty.
YOUR DATE OF BIRTH
INITIAL IRA ACCOUNT BALANCE YOU USED, AND ITS DATE
IRA BALANCES AS OF END OF EACH MONTH FROM 9/30/2013 THRU 3/31/2014 IF SIGNIFICANTLY DIFFERENT
INTEREST RATE USED
DATE OF 1ST DISTRIBUTION, AND AMOUNT
DATES & AMOUNTS OF OTHER 2014 DISTRIBUTIONS
(A DEC ONE MIGHT BE ABLE TO BE ROLLED BACK TO AVOID PENALTY)
WHY DID YOU TAKE ADDL DISTRIBUTIONS ?
HOW MUCH DO YOU NOW NEED ANNUALLY IN CASH FLOW ?
DO YOU HAVE OTHER SOURCES FOR CASH TO PAY EXPENSES, OR THE TAXES ?
DID YOU WORK WITH AN ACCOUNTANT, TAX OR FINANCIAL ADVISOR ?
2015-01-23 17:40, By: dlzallestaxes, IP: [18.104.22.168]