Separate from Service After 55 & 72(t)

L1: Separate from Service After 55 & 72(t)Gordon,First off, THANK YOU for this wonderful site!Next, I have a question about a statement made in Exceptions page , specifically:”The following additional exceptions apply only to distributions from a qualified employee retirement or annuity plan: The following additional exceptions apply only to distributions from a qualified employee retirement or annuity plan: * Distributions made to you after you separated from service with your employer, if the separation occurred after you reached age 55.”Do you have a citation from the IRC for this? I’ve not been able to find anything other than the substantially equal periodic payments stuff. Does this apply to non-uniform distributions or for periods of less than 5 years?Thanks in advance for your answers.Regards,Glenn Talbott56 and retiring next month. 2002-05-21 12:30, By: GT, IP: [127.0.0.1]
L2: Separate from Service After 55 & 72(t)Hello Glenn:What you refer/think of as 72(t) & SEPPS is actually found in IRC 72(t)(2)(A)(iv). Right next door in IRC 72(t)(2)(A)(v) says “made to an employee after seperation of service after attainment of age 55”.The rules:1. The assets MUST, repeat MUST remain in the the employer sponsored plan. If you rollover the plan assets into an IRA you will lose the ability to use this exception.2. You must seperate (quit) your employer in the year in which attain age 55 or older. You need not be 55 when you quit; just 55 some time that year.3. This exception only applies to assets in your employer plan from the employer from which you are separating. Thus, if you have 401(k) assets with prior employers, get those prior employer assets rolled into your current employer’s plan before you terminate.The benefits:1. Take out however much you want to take out whenever you want and pay regular income tax but no penalty.2. No annual limits, no 5 year rule, no age 59 1/2 rules.TheBadger 2002-05-21 14:58, By: TheBadger, IP: [127.0.0.1]

L2: Separate from Service After 55 & 72(t)Badger,Thanks! That’s what I was looking for.Glenn2002-05-21 19:35, By: GT, IP: [127.0.0.1]