SEPP plus earned income

L1: Gfw……..ThankyouI recently had a financial planner say that you cannot take a 72t w/d and work.Can you tell me if, and if so; where the language is found in the IRS document?Thanks again2002-04-03 19:18, By: RLM, IP: [127.0.0.1]
L2: RE: Gfw……..ThankyouI recently had a financial planner say that you cannot take a 72t w/d and work. Can you tell me if, and if so; where the language is found in the IRS document?Needless-to-say, in my opinion, your financial advisor is dead wrong; therefore, the first piece of appropriate advice is run, don’t walk, in the opposite direction as quickly as possible.To answer your question more directly; SEPPs or IRC 72(t)(2)(A)(iv) withdrawals; with the obvious implication being to avoid the 10% surtax and statutory interest charges is unrelated to earned income; e.g. that which you receive for being employed. That’s why it is in 72 of the Internal Revenue Code as opposed to 61 of the IRC which defines earned income as well as other types of taxable income. Unfortunately, there is no affirmative statement in the IRC that 61 income and 72 income at the same time is okay; rather, it is by omission of any linking language between the two different code sections that does make it okay.I know this sounds a bit perverse, but it is correct. The IRC is the law of the land (unfortunately for all of us) but is a law interpreted by affirmation or action only; meaning the IRC must state affirmatively what is to occur otherwise from a taxation perspective, it does not exist. For example, we all know that dividends are taxable income. That’s becuase IRC 61(a)(7) says so. In the absence of that code section, dividends would not be taxable income as they are in so many other countries.Therefore, due to the affirmative nature of the IRC; 61 & 72 taxable income at the same time is perfectly permissable simply because there are no code sections making it impermissable.TheBadger2002-04-03 22:29, By: TheBadger, IP: [127.0.0.1]

L2: RE: Gfw……..ThankyoutheBadger is right on!2002-04-04 16:55, By: Gfw, IP: [127.0.0.1]