Last Draw for 72t
L1: Last Draw for 72tI have an existing SEPP. My first distribution was January 20, 2010. My birthdate is 07/02/1959.
I turn 59 mid year in of 2018, and turn 59-1/2 January 2, 2019. Do I have to take a draw on January 20, 2019?2017-01-02 16:39, By: Dee, IP: [188.8.131.52]
L2: Last Draw for 72tNo, you do not have to take a SEPP distribution in 2019. Starting 1/3/2019 your SEPP is completed and you can take distributions only if you want to. They will be coded as normal distributions (code 7) if you take any distributions in 2019. Of course, you must take out your full annual distributions for 2017 and 2018.2017-01-02 17:29, By: Alan S, IP: [184.108.40.206]
L3: Last Draw for 72tThank you so much!
I have visited this site numerous times. I am so thankful for the information I received when setting up my 72t. It was a life saver.
THANK YOU!2017-01-02 17:44, By: Dee, IP: [220.127.116.11]
L3: Last Draw for 72tWith all the new rules coming in April 2017 with the DOL, I have thought about moving my IRA to another investing firm, as Wells Fargo is going to managed investing that includes high annual fees. What all would that entail transferring with the 72t in my IRA?2017-01-02 17:50, By: Dee, IP: [18.104.22.168]
L4: Last Draw for 72tBecause of the recent “partial distribution/transfer” rules, I suggest moving the entire account, and all to just one other broker.2017-01-02 18:18, By: dlzallestaxes, IP: [22.214.171.124]
L5: Last Draw for 72tYes, I planned on doing that. Is there any special paperwork to fill out or does it all just automaticallytransfer to the othercompany? With the new company, they said they would code the 1099-R with 1, and I’ve been receiving a 1099-R coded with 2. Is all this irrelevant except for the fact that I would have to file form 5329 with my taxes?
I’m assuming no paperwork to fill out, besides what’s needed for the IRA itself.2017-01-02 18:35, By: Dee, IP: [126.96.36.199]
L6: Last Draw for 72tYour current custodian is one of the few who provides the 2 code. Since the majority of custodians use code 1, a 5329 form to claim the exception is normal and not a red flag to the IRS.
Tax reporting will be a little easier if you completea direct trusteetransfer (preferred to doing an indirect rollover which will generate a 1099R and use up your one permitted such rollover within a 12 month period) before doing any SEPP distributions for 2017. That way you will only one get one 1099R to which you will add the 5329.
No other implications to worry about.
2017-01-02 23:09, By: Alan S, IP: [188.8.131.52]