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last year of plan

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Byrick

L1: last year of planMy first 72t withdrawal was on 1-5-2006. I have been taking the same amount out twice a year ($23,500 on May 1 and Nov 1 = $47k per year)each year. As a result of the market downturn I may not have enough remaining in the account to take out the same amount I have taken out in all the other years. Using the calculators on this site it looks like 4-1-2011 is the end date. Will I face a penality if I can meet the full $47k withdrawal in 2010 ? In 2006, 2007,and 2008 I did the full $47k withdrawal, and will be able to make the $47k withdrawal for 2009, but unless I get a big market recovery I will have trouble making the full $47k withdrawal in 2010. What are my options at this stage ? 2008-10-31 00:24, By: rick, IP: [222.154.138.5]
L2: last year of planIf you made your first withdrawal on 1-5-2006, then how did you also take distributions of $ 23,500 on 5/1/06 and 11/1/06 ? I think that you meant that you took those semi-annual distributions in years after 2006.Regardless, the IRS has acknowledged that you if your SEPP 72-T account does not have enough in it to satisfy your “annual distribution”, you will not “bust” the plan if you take out the entire remaining balnce if it is less than the required amount.2008-10-31 08:03, By: dlzallestaxes, IP: [96.245.168.66]

L2: last year of planOops.. sorry…..spell check did not catch my dumb error. You are correct….I have been taking withdrawals on May 1 and Nov 1 starting in 2006. Thanks for your response. 2008-10-31 14:34, By: rick, IP: [222.154.138.5]

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