Rollover & 72(t)

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L1: Rollover & 72(t)If I am currently doing substantially equal payment distributions from an IRA, am I still eligible to do a 60 day rollover from that IRA without causing the 10% penalty to kick in on my past distributions?2008-10-12 18:16, By: tony+d, IP: []
L2: Rollover & 72(t)In certain situations you can, and other situations will bust your plan. Please be more specific about this rollover – are you creating a new account from scratch? Are you taking a 60 day distribution to get extra use of funds and then wish to roll the funds back to the 72t IRA? What is it that you are doing with this “rollover”?Also keep in mind that you can only do one rollover from an IRA account within a 12 month period. This rollover can be used to correct a distribution that was too high in order to get the amount equal to the requirement. But once that safety valve has been used, it is no longer available for the next 12 months. It is best to save it.2008-10-13 16:04, By: alan+s., IP: []

L2: Rollover & 72(t)Thank you for your response. I am doing this totake a 60 day distribution to get extra use of funds and then wish to roll the funds back to the 72t IRA?2008-10-14 10:02, By: tony+d, IP: []

L2: Rollover & 72(t)You can do that as long as you have have not used up your one permitted rollover in the last 12 months. While a 72t distribution cannot be rolled over, you will still take your full 72t distribution and only the excess amount is rolled back. Therefore you are not rolling over a 72t distribution.But you need to be aware that if you use up your one rollover doing this, the safety valve of having a rollover available to correct any errors will disppear for the next 12 months. That places extra pressure on you to make sure that the exact correct amount of distributions is taken in accord with your 72t plan.Of course, you will also have to be totally sure that you will have funds available within 60 days to complete that rollover.2008-10-14 14:49, By: alan+s., IP: []