Should I take the 72(t)

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L1: Should I take the 72(t)I believe I should have enough emergency money by the time I’m 58 next year. And I am wondering for the last 1 1/2 years should I take the 72(t) or use my open equity line on the house which is at $35,000? If I do this then I am thinking I could pay off the equity line when I reach 59 1/2. What do you think? (Conservatively, I have at least $100,000 equity in the house.)2009-04-20 19:22, By: Steve, IP: []
L2: Should I take the 72(t)DO NOT USE A SEPP 72-T. If you do, you MUST continue it until the LATER of 5 years or 59 1/2. Use your other resources for the next24 months.2009-04-20 20:15, By: dlzallestaxes, IP: []

L2: Should I take the 72(t)Steve:
I’m not sure of your status … do you have a currently running 72(t) plan, or are you just thinking about starting one? A 72(t) must run for a minimum of 5 years and until you reach age 59 1/2. If you start a plan at age 58 then you must run until age 63. So if you only have 1 1/2 years to cover, then other options would seem to be the best approach.
My suggestion is to get with a financial planner to work through your entire situation. You haven’t provided enough information and this forum is not really set up for the planning it appears that you will need to solve your entire financial problem.
Jim2009-04-20 20:20, By: Jim, IP: []

L3: Should I take the 72(t)Jim,
Thanx for the reply. Because of that 5 year rule I will be looking at other alternatives to cover me until I hit 59 1/2.
Steve2009-04-20 20:34, By: Steve, IP: []

L3: Should I take the 72(t)Jim,
Just another thought. If I were to take the 72(t), am I allowed to roll back any of the distributions into the IRA?
Steve2009-04-21 12:58, By: Steve, IP: []

L4: Should I take the 72(t)Steve:
The short answer about rolling back 72(t) distributions on a regular basisis “No.” You are only allowed one roll out and one roll in per account per 12 month period.
However, assume you have a plan using Fixed Amortization method distributing $12,000 per year and wish to change to the RMD method mid-year. Assume your newly calculated, annual distribution amount is $4,000 and you have already taken $6,000. You can roll back $2,000 into your SEPP Plan account(s) within the 60-day rollover window. Now you are back to the $4,000 distribution amount for the year using RMD, and you can’t take anymore distributions for that Calendar Year. Also, you can’t do any rollover action either into or out of the SEPP Plan accounts for the next 12 months.
Stick with your decision to fund your life from other sourcesuntil you reach age 59 1/2.
Jim2009-04-21 14:27, By: Jim, IP: []