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“Reseting” 72t

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Byjag

L1: “Reseting” 72tIf a person (49 now) has $750k that she began a 72t 3 years ago (age46 at the time)and now the account balance has gone up to $950k, can she reset or redo the 72t…..In essence stop the old 72t…pay the penalty on the money already taken…(about $15k)…then start another one with the higher current blance? If so…

1. How long should she wait between them….a month?
2. Should she switch account numbers all together to keep it clean?
3. other considerations??

The move (between her new balance, older age and 72t rates going up) it means about $15k more a year for her…..

Thanks in advance2007-06-11 03:47, By: JAG, IP: [70.121.108.105]

L2: “Reseting” 72tHello JAG:
There are no “formal” rules here. I would:
1. Wait at least a month if not goign forward to the next beginning-of-quarter.
2. Document this situation to Nth degree in writing.
3. File amended returns for 2004/05/06 and pay the surtax; the IRS will send you follow-up bills for the interest.
4. Alert the 2007 return to explain what is happening.
TheBadger
wjstecker@wispertel.net
2007-06-11 06:53, By: TheBadger, IP: [72.42.67.41]

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