Return of withdrawal

L1: Return of withdrawalInMarch I took a withdrawal of $16,000 which busted my 72T account that I started in April, 2004. Would I have been allowed to return the $16,000 within 60 days into a new account with the same firm and then have started a new 72T account, thereby eliminating the penalty I’m going to have to pay on the $16,0002005-09-07 12:38, By: maddie, IP: [24.229.155.137]
L2: Return of withdrawalThe answer is possibly yes – but if you are asking whether the firm had an obligation to tell you that you could put it back, the answer is no.
If 16,000 + reguar planned withdrawals made year-to-dateis less than the total planned withdrawals for the year, then you still haven’t busted the plan.
Hope this helps. 2005-09-07 15:26, By: Gfw, IP: [172.16.1.70]

L2: Return of withdrawalTo expand on the last answer, the calculated SEPP 72-T withdrawal is an annual amount, which can be withdrawn at any frequency during the calendar year. The first and last years I believe are prorated based upon the number of months. (It is possible that I could be wrong and you can take an entire year’s withdrawal without prorating it, but I doubt it. Otherwise you could start a program late in a year and take a large amount, which would defeat the concept of “substantially equal payments”.)
In the last year you would take the difference between the annual amount and the amount taken in the first year, which is the same as prorating the last year’s annual amount over the number of months in that year up to the termination date.2005-09-07 15:55, By: dlztaxes, IP: [4.175.9.180]

L2: Return of withdrawalIn regards to dlztaxes response, I believe a person can take a full annual distribution during the first year of a SEPP even if it is December. Additionally, they could take another full year distribution in January and not violate any rules so long as it was the same amount of the December distribution and no further withdrawals were made for that year. Isn’t that correct?2005-09-08 11:17, By: RJ, IP: [209.114.244.70]

L2: Return of withdrawal_Sounds right RJ. However, with reference to dlztaxes” post- I do recall a PLR allowing pro-rata treatment for the first year.Look for responses from gfw and TheBadger-No disrespect meant dlztaxes- but your post does acknowledge that you are not 100 percent sure that your response is correct2005-09-09 03:39, By: Denise Appleby, IP: [68.38.254.240]