Interrupting 72t in Stimulus Plan

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L1: Interrupting 72t in Stimulus PlanCan anyone confirm that the recent stimulus/bailout plan provides for 72t users the ability to forego or delay 2009’s distribution? I know they were discussing this for RMD’s. I’ve been taking distributions for 3 years now, 2009 would be my fourth, and with balances down in Ira’s this days, it would be nice to eliminate or at least reduce this years withdrawal. Appreciate your responses.2009-01-28 12:48, By: mike, IP: []
L2: Interrupting 72t in Stimulus PlanWhat you are probably referringto is the Worker, Retiree, and Employer RecoveryAct of 2008 (WRERA) – It does not apply toSEPP plans.2009-01-28 12:57, By: Gfw, IP: []

L3: Interrupting 72t in Stimulus PlanUnless you are already using the RMD method, you can substantially reduce your 2009 SEPP distribution by making the one time switch to the RMD method effective 1/1/2009. Use the 12/31/2008 balance.But be careful before doing this because the RMD method will produce perhaps 60% of the prior method and if your account also dropped 40%, this means you new distribution may be down by close to 2/3. If you cannot live on that reduced amount along with other income sources, do not make the change as it could cause you to later bust your plan. Also, note that you would have to make new calculations every January based on your new age and account balance, so further changes in your SEPP amount are assured until the plan can terminate. The original plan modification date remains unchanged.The WRERA relief applied to another section of the tax code <401(a)(9)>, not to 72t, even if your 72t plan uses the RMD method.2009-01-28 23:55, By: Alan S., IP: []