Restarting a 72(t)

L1: Restarting a 72(t)I have been taking my 72(t) for three years now. If I choose to take an additional amount on top of my 72(t) distribution, I will then violate my 72(t). If, in the next few months, I choose to restart my 72(t),is the “5 years or 59 1/2” still in effect, or do may previous three years in a 72(t) count towards my new 72(t) and I only need to take it for another two years?
Thanks.2007-05-16 12:25, By: 72(t)researcher, IP: [12.20.48.10]

L2: Restarting a 72(t)A “busted plan” is just that … a “busted plan.” You can only “start” a 72(t) but can never “restart” a plan. So in your scenario, it sounds like you will be busting the first plan and then setting up a new plan which will have a new 5-year period to runin addition to the age 59 1/2 restriction.
Jim2007-05-16 14:07, By: Jim, IP: [24.252.195.14]

L2: Restarting a 72(t)If you have other IRA or plan assets you can access, you can also start a second 72t plan. In that case, you would have to complete your original plan to the 5 year or 59.5 modification date, and your second plan would run separately on it”s own 5 year or 59.5 schedule. That would enable you to avoid any early withdrawal penalty, particularly the retroactive penalties and interest for the 3 years. Again, for this to work, you must have other IRAs or retirement accounts that can be rolled to an IRA, and many people do not.
If not, andthis is a one time expense, you should also explore any loan possibilities to avoid busting the plan and having to start over with a new plan.2007-05-16 17:08, By: Alan S., IP: [24.116.66.98]