L1: PensionIs a 72t considered a pension?
Harold2013-05-03 18:38, By: Harold, IP: [188.8.131.52]
L2: PensionI suggest that you give us your background information, and the reason for your question.
An IRA is not a “pension”, but both are “retirement plans”.
A SEPP 72-T is a plan set up using IRA’s as the basis for the annual distribution.
Pensions usually have a fixedannual distribution determined by the plan, while IRA’s are flexible, with distributions determined by requests from the taxpayer.
If you are 55, or will be 55 by 12/31/2013, you should consider not setting up a SEPP 72-T because that way you will not be lockied in for 5 years. Similarly, in that age 55+ situation, consider not rolloing over your plan to an IRA.
Also, if there is employerstock in your pension/401-K, check with your HR Dept or plan administrator to determine the cost basis of that stock, and the feasibility of using the special IRS provisions for NUA ( Net Unrealized Appreciation). ( search this website, or google)2013-05-03 19:52, By: dlzallestaxes, IP: [184.108.40.206]
L2: PensionIs a 72t considered a pension?
72(t) refers to that portion of the Tax Code (law) which allows a person whohas not reached his/her age of 59.5to withdraw funds from their IRA, 401(k), etc. without having to pay the 10% Early Distribution Penalty.
If you need more answer than this you should do as DLZ suggested and provide more details about your situation.
Jim F2013-05-03 20:47, By: Jim F, IP: [220.127.116.11]