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Partial disbursal options

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Last Updated On
ByBob Mac

L1: Partial disbursal optionsIn a prior posting the following statement was made.”If you start your SEPP 72-T in August, then you can take EITHER your calculated ANNUAL DISTRIBUTION between then and 12/31/08, OR you can take 5/12 of your ANNUAL CALCULATION.”
Where can I find language in the code that stipulates the partial year options as stated: either prorated or full calculated amt? 2008-08-11 15:04, By: Bob Mac, IP: [69.124.50.171]

L2: Partial disbursal optionsSince it has been stated thousands of times by numerous experts on this website, trust me, and them, that this is so. No need to bother yourself since it has been researched thoroughly.2008-08-11 15:23, By: dlzallestaxes, IP: [96.245.168.21]

L2: Partial disbursal optionsThat works for me! thanks2008-08-11 17:07, By: Bob Mac, IP: [69.124.50.171]

L2: Partial disbursal optionsMost of the operating procedures of 72t plans are not stated in the tax code itself, but in a combination of private letter rulings and revenue rulings over the last 20 years. An example of the handling of the first stub year distribution was established in a PLR in 2000 listed in the key PLRs portion of this site. There are been very few rulings on the final stub year vrs the first year, and the IRS has not been looking the find reasons to bust plans in the final year as long as nothing grossly inconsistent has been done. That”s why as long as 5 years worth of distributions has been taken, there is considerable flexibility in the final year to take either -0-, the pro rated amount by the month, or the full annual amount prior to the modification date.2008-08-11 17:54, By: Alan S., IP: [24.116.165.60]

L2: Partial disbursal optionsThanks.2008-08-11 18:08, By: Bob Mac, IP: [69.124.50.171]

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