procedures to start a72t

L1: procedures to start a72tI have a 403b that i know needs to be converted to a ira. But once I convert are there penalties taking the money out of a ira from the bank since I’m not 59 1/2 and the ira hasn’t matured? I’m basically wanting to take interest only from account. Does the bank charge for distributions?I’ve talked to a few people and they are clueless about 72t. Any help with procedures would be appreciated.2009-10-19 17:56, By: jav, IP: [75.205.2.1]
L2: procedures to start a72tApparently you have an IRA invested as a CD at a bank. When does it mature ? Ask the bank how much the penalty for early withdrawal is.I assume that you are 55 or older. If you have “separated from service” from the employer with your 403-B during 2009, then you may be eligible to take periodic distributions without the 10% penalty for early distributions. The last option would be transferring the 403-B to an IRA, and setting up a plan that you will be locked into for 5 YEARS !!!!!Give us your date of birth andwhen you left that employer, and the balance in your 403-B.P.S. There is a formula (on this website) which will calcualte how much your annual distribution will be, and a “reverse calculator” which indicates how little you can put into a SEPP 72-T to result in the distribution you want. You are not allowed to set up your plan to get only the interest/dividend income. There is more to it than that. I’m sure there is an accountant in your area who is knowledgeable, but you can buy the book advertised on this site to get a good starting background on what it’s all about.2009-10-19 19:19, By: dlzallestaxes, IP: [72.78.110.230]

L3: procedures to start a72tRE: You are not allowed to set up your plan to get only the interest/dividend income.Does this apply to any IRA plan?2009-10-20 14:12, By: Dee, IP: [74.194.177.27]

L4: procedures to start a72tIt applies to any IRA plan if you are under age 59.5 and don’t want to pay the 10% penalty in addition to the income tax on the amount of the distribution. 2009-10-20 14:39, By: Gfw, IP: [216.80.125.206]

L3: procedures to start a72tI’m 55 and I left service at age 52, thinking I could start drawing interest off 403b at 55 to suppliment my pension,but did not realize that I had tostay working there to age 55 before I could draw it from 403b. I started drawing from my pension but not 403b.2009-10-20 15:18, By: jav, IP: [70.194.38.14]