My Existing 72t Will End Next Year
L1: My Existing 72t Will End Next Year DOB 1-20-56
Existing 72t was started June 2011
I am approaching the end (June 2016) of the 5 year term for my 72t. Is there anything I need to be aware of that needs my attention to ensure that I don’t mess things up at the last minute with regard to incurring the tax penalty? I have been checking the make sure the payout did not change each month, but I just want to make sure my investment firm does everything necessary to ensure my IRS compliance with this process.2015-11-24 15:51, By: bimmer84, IP: [126.96.36.199]
L2: My Existing 72t Will End Next Year From your post it appears you took out 7 monthly distributions in 2011, 12 monthly distributions 2012-2014 and will take 12 monthly distributions including the December distribution this year. That is 55 months, so if you just continue the monthly distributions through May, 2016 (5 more distributions)you will have the required 60 total distributions. There is nothing else you need to do to report the end of your plan. Starting July, 2016 you can take out as little or as much as you wish with no impact on your plan. You probably have been filing a 5329 each year to claim the SEPP penalty exception unless your custodian showed code 2 on the 1099R forms.2015-11-24 23:34, By: Alan S, IP: [188.8.131.52]
L3: My Existing 72t Will End Next Year Thanks for clearing things up for me. I believe all of my 1099R’s showed Code 2 but I will check.
When you say that I can start taking out as little or as much as I want in July 2016, is that accurate? I was 59 1/2 in July 2015, so wouldn’t I be able to do that one month earlier, in June,after the 72t terminates?2015-11-26 14:16, By: Bimmer84, IP: [184.108.40.206]
L4: My Existing 72t Will End Next Year What was the exact date that the first distribution was made? June ??, 20112015-11-26 15:00, By: Gfw, IP: [220.127.116.11]
L5: My Existing 72t Will End Next Year Yes, you could take a withdrawal of any amount in June, noearlier than5 years and 1 day from your first distribution. But I indicated an entire month of July since you did not indicate the actual date of your first distribution and without that date, July was the first entire month that would be safe.2015-11-26 22:10, By: Alan S, IP: [18.104.22.168]
L6: My Existing 72t Will End Next Year Got it. Thanks for the clearly stated info. My first distribution was 6/9/2011.
I see the wisdom in waiting until July, but also understand that I could go with the new withdrawals on, say 6/15/2016 and still be okay.2015-11-27 15:56, By: bimmer84, IP: [22.214.171.124]