L1: Modification Date???
Existing Plan; DOB: 5/8/1958; 1st Distribution: 1/15/14 I have taken five annual payments from my plan…1/15/14, 2015, 2016, 2017 & finally 1/15/2018. I turned 59.5 on 11/8/17. Therefore I feel I’ve satisfied all rules for minimum time periods. I understand I need to wait until the end of the 5th plan year to modify my plan, which in my mind would be 1/14/19. I’d like to stop the withdrawals because of tax reasons. The calculator says the “modification date” is 1/16/19, so does this mean I have to take my
SIXTH distribution on 1/15/19? Thanks to all for your insight!
2018-08-13 14:22, By: Mike S, IP: [220.127.116.11]
L2: Modification Date???
NO. It means that your plan ends on 1/15/2019, and you can take any amount, or no amount, after that date because the 60 months are up from the first distribution date, and you will be at least 59 1/2 on that date.
2018-08-13 14:36, By: dlzallestaxes, IP: [18.104.22.168]
L3: Modification Date???
Not meaning to beat a dead horse, but since my plan ends on 1/15/19, and I can modify it “after” that date (meaning 1/16/19), then it seems like I must take the 1/15/19 distribution since I assume my plan ends at the end of that business day (1/15). I would think my “plan year” would be from 1/15 through 1/14, and my first modification date would be the first day of the 6th plan year, 1/15/19. What am I missing? Thanks again!
2018-08-13 17:57, By: Mike S, IP: [22.214.171.124]
L4: Modification Date???
The extra two days are just a safety margin that is recommended. The real issue here is whether you take a 2019 distribution prior to the mod date or not. Because this is a 5 year plan and you will already have completed 60 months of distributions at the end of this year, it is strongly recommended that you do NOT take a 2019 distribution prior to the mod date. While unlikely, it is possible that the IRS would bust your plan if you did based on an interpretation of the Arnold v Commissioner Tax court case of 1998. And you prefer not to take a 6th year distribution anyway.
2018-08-13 18:36, By: Alan S, IP: [126.96.36.199]
L5: Modification Date???
Sorry to hijack, but I’ve been trying for a few days to post a new forum question/post. Can anyone point out why when I do ‘new post,’ hit ‘save,’ and ‘yes’ to the ‘did you put in the required info’ that nothing happens, and the post doesn’t save to the forum?
2018-08-13 18:55, By: Rory, IP: [188.8.131.52]
L6: Modification Date???
You aren’t being blocked. Start by clearing your browser cache…
If using Internet Explorer… Click on [Settings] then [Internet Options] then [Delete]. Only boxes 1, 2 & 4 (not 3) should be checked. Click on [Delete]
If using Google Chrome_ Click on [Settings], then [History] the [Clear browsing data]. Make sure that only the 1st 3 boxes are checked and then click on [Clear Browsing Data].
And as a final point, don’t put any URLs in your post. We only allow a limited number of people to add any links
2018-08-13 20:13, By: Gfw, IP: [184.108.40.206]