How Can We Help?
< Back
You are here:
Print

question

Posted
Last Updated On
ByCarol1

L1: questionHello, I have to continue my 72T distributions past age 59 1/2 and will be 61 in the year I take my last distribution. I am fortunate to be getting the coveted code 2 on my 1099 from Schwab each year. My question, even though I put on my request for the distribution that it is a penalty free withdrawal in my 61st year, I have a feeling they will probably give me a code 7 because they will see I would be age 61. So, at age 60 and 61, if I get that expected code 7, do I let it be, or try to get it changed to a code 2 by explaining to Schwab that I am still under the 72T rules, or do I simply keep the code 7 and add an explanation to the IRS? Or fill out a form 5329? Or do nothing and file as usual?Thanks for your insight.2011-03-21 20:12, By: Carol1, IP: [75.91.197.141]
L2: questionYou are correct, you will get a Code 7 and in the year you reach 59.5 you will probably get two 1099R forms split between your distributions before and after you reach 59.5.Do not change the 7 coding as it is correct after 59.5. Do not file a 5329 or make an explanation, just file as usual by reporting the distribution on lines 15a and 15b of Form 1040.2011-03-21 20:20, By: Alan S., IP: [24.119.230.17]

L3: questionWhew! Cool. Thank you so much. This site has given me the confidence to take care of these distributions with no regret.2011-03-22 02:25, By: Carol1, IP: [75.91.197.141]

Table of Contents