L1: Stopping 72TI am taking early withdrawls set up as a 72T. Itstarted at age55. I am now 57. Can I completely stop withdrawls? 2009-06-08 18:42, By: Harry, IP: [18.104.22.168]
L2: Stopping 72TNO !!!!!
With all of the info on this website to the contrary, why would you think that you could stop? Unless you are confusing SEPP 72-T with the 2009 moratorium on Required Minimum Distributions at 70 1/2.2009-06-08 20:04, By: dlzallestaxes, IP: [22.214.171.124]
L2: Stopping 72TNo, you would only stop withdrawals if you feel that paying the early withdrawal penalty and interest for the 72t distributions you have already taken is preferable to continuing to draw down your IRA funds. This could be the case if you suddenly have new sources of income that will put you in a higher bracket, and you are sure that you will not need to tap the retirement account until after 59.5.
Otherwise, you must continue your 72t distributions for 5 years, which is slightly longer than the date you will reach 59.5. You must take 60 months worth of distributions to meet that requirement.
Another option to terminating the plan is to make the one time switch to the RMD method, which will result in taking out much less than you have been, but you will avoid the retroactive penalty. Depending on how much you have taken out so far in 2009, you may be able to make this switch effective January 1, 2009.
Why did you want to totally stop distributions?2009-06-08 20:08, By: Alan S., IP: [126.96.36.199]