Missed Distribution

L1: Missed Distributionthree questions- i am 58 years old and have been on 72T since June 2000.That year I took half year annuity method totalling $24,201.59. Then in 2001 $38,031.07. I changed advisors in 2002and my distribution changed from $38,031.07 to $41,488.49 for years 2002,03,04. Can they recalculate my distribution as a result of an IRA transfer? In 2005 I switched from Annuity method to RMD which lowered my distribution to $4399. In June of 2006 I changed advisors again and transferred my IRA to my new advisor.As a resultwe never took out my 2006 RMD.Is there anything i can do take my distribution for 2006 so i don”t violate the 72T rules? If not,which i dont think there is, i realize i will be subject to a 10% retroactive penalty on all previous withdrawals- how do i handle this with the IRS?2007-01-31 15:05, By: FA, IP: [66.219.164.250]
L2: Missed DistributionWow!
You need to contact Bill Stecker (who frequents this site) or another CPA knowledgable about 72(t) immediately.
From what I read in your post I think your SEPP was busted in the second year since that annual distribution amount ($38,031.07) can”t be rationalized based on the first partial distribution amount ($24,201.59) using either 5, 6 or 7 months for the period covered during the first year (you indicated it was a half year).2007-01-31 16:36, By: John, IP: [71.208.232.16]

L2: Missed DistributionYou did not indicate who made each of the various calculations. If they were made by each of the numerous “advisors”, and you have documentation from them of the amounts for each year, then immediately retain a very good attorney. He should contact the main office of each firm, and present your documentation to them. He will advise them that they are reasonable for any and all IRS penalties, interest, etc., and let them spend their money determining how they handle their share of this monsterous problem. And fire your latest “advisor” because of his incompetence in not determining what your annual amount should be for 2006, and if you had already taken that withdrawal. And if not, he/his firm, had a responsibility to advise you, in writing, of the distribution you had to take by 12/31/06. It appears that most of your “advisors” had no experience with SEPP 72-Ts, and are probably liable for professional negligence for accepting engagements to provide services for which they had no qualifications. Further, you are primarily responsible for not using due diligence in selecting these “advisors”, and determining the accuracy of these fastly changing figures. Were all of these “advisors” losing you so much money that you contually changed, or were you self-directing your investments, and calculating your own incorrect annual amounts. By the way, I do not believe that everyone on this forum would want to take the time reading details of all of the applicable information/data in this scenario, and no one should eitherunless there is a significant retainer. Sorry to be so blunt, but you might have brought this all on yourself, and it could cost you dearly.2007-01-31 20:58, By: dlzallestaxes, IP: [4.175.75.209]