Required distribution year turn 59 1/2
L1: Required distribution year turn 59 1/2I started one 72t Dec 2008 with annual distributions. I turned 59 1/2 on Dec 5 2014. Normally the distribution came to me around Dec 2nd each year. In 2014 it did not come until Dec 10 a few days after I turned 59 1/2. The 1099r shows 7 distribution code. From other post I read it appears this may not be a problem. I have a 2nd 72t that started Nov 2009 that gets distributed Nov each year and it came on time and the 1099r shows 2 distribution code. Please advise. Thank you.2015-02-11 17:42, By: Janie, IP: [188.8.131.52]
L2: Required distribution year turn 59 1/2As of Dec 2013 your SEPP 72-T was 5 yrs (60 months) old. It would have terminated, except that you were not yet 59 1/2. Therefore, it did not terminate until you reached 59 1/2 on 12/5/2014. You were not required to take any distribution in 2014, but since you did take one after you were 59 1/2, it is a “normal distribution”, which gets a code 7. All distributions before reaching age 59 1/2 or 5 years in the plan are a code 2.
Both of your plans are properly coded. If you had taken a distribution in 2014 before 12/5/2014, that distribution would have been coded 2 also, and you would have then received 2 separate 1099-R forms for 2014 for that account, and a 3rd one for your other SEPP 72-T plan.2015-02-11 21:54, By: dlzallestaxes, IP: [184.108.40.206]
L3: Required distribution year turn 59 1/2As dlz indicated no harm done – except if you did not need that December distribution since you had the option to not take anything at all from that IRA account in 2014. In that case the 60 days to roll that distribution back into the IRA and erase the 2014 taxable income just ended 3 days ago. If any of these IRAs are on automatic distribution instructions, better get them updated ASAP to just distribute what you actually need.2015-02-11 22:11, By: Alan S, IP: [220.127.116.11]