How Can We Help?
< Back
You are here:
Print

Stop 72t distributions and begin regular Anuity payments for retirement

L1: Stop 72t distributions and begin regular Anuity payments for retirement
Back in 2007 I began early distribution of my two aunties under 72t early distribution. I was born in dec of 1952 so had to continue the early distributions for 5 years as the 59 1/2 point was earlier. Both annuities paid me the first time in dec of 2007.
One gave me an annual distribution that first year and the other gave me only a quarter that first year. I did a one time reduction of the pay out in 2009 on both.
I want to end both and begin regular Anuity payments ASAP. I believe the one paying the annual amount in 2007 can be ended as of dec 31, 2011 however I need to know if I can end the other as well since it only paid me one quarter in 2007 as it was set up
on quarterly payments.
Both reported pmts on form 1099R with a code 2 in box 7. The annual in the amt of 13265.96 and the quarterly in the amt of 3159,89.
2012-01-08 22:07, By: DJ, IP: [66.75.125.149]

L2: Stop 72t distributions and begin regular Anuity payments for retirement
The fact that you have taken 5 annual distributions is immaterial, even if you are 59 1/2. You cannot terminate your SEPP 72-T until 60+ months after your first distribution. This is a common misconception by people whothink that they can end it after 5
annual payments.
The quarterly plan likewise does not enduntil Dec 2012.I suggest waiting until the following month, i.e. Jan 2013 to terminate these plans, and modify or terminate the distributions.
2012-01-08 22:38, By: dlzallestaxes, IP: [96.227.217.194]

L3: Stop 72t distributions and begin regular Anuity payments for retirement
MAHALO (thank you) for the help.
2012-01-10 03:34, By: DJ, IP: [66.75.125.149]

Table of Contents