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One time change to Min. Dist. Method

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Last Updated On
ByBudman

L1: One time change to Min. Dist. MethodI set up a 72(t) plan in July of 2005 using the amortization method. At the time I was retired and 55 years old. (May 13th) If I do the “one time change” to the minimun distribution method, how long am I required to continue that schedule. If I continue as it is now, it would be July of 2010, but with the “one time change”, can I end the 72(t) at that time?2008-12-07 07:26, By: Budman, IP: [68.186.234.234]
L2: One time change to Min. Dist. MethodThe one-time change to the MD method does not alter the starting date or the ending date.2008-12-07 08:48, By: Gfw, IP: [98.214.144.242]

L2: One time change to Min. Dist. MethodSince I started the 72(t) in July of 2005, would I have to wait for July of 2009 to make the change?2008-12-08 19:26, By: Budman, IP: [68.186.234.234]

L2: One time change to Min. Dist. MethodYou can make the change of method at any time. You do not ahve to wait until any “anniversary”. You just want to use an appropriate date based upon valuation of your accounts, etc.2008-12-08 21:23, By: dlzallestaxes, IP: [96.245.168.66]

L2: One time change to Min. Dist. MethodBudman… A good time to make the change would be in January 2009 using the account balance as of 12/31/2008.2008-12-09 02:23, By: Gfw, IP: [98.214.144.242]

L2: One time change to Min. Dist. MethodIf I make the switch for Jan. 09, what date does the IRS use to verify that I haven’t withdrawn more than I’m supposed to? I’m currently withdrawing $3,893 a month and switching over to the RMD method would cut that amount by over half.2008-12-09 06:39, By: Budman, IP: [68.186.234.234]

L2: One time change to Min. Dist. MethodJust keep really good records in case you get an audit – be ready to document the plan’s history.2008-12-09 08:03, By: Gfw, IP: [216.80.125.206]

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