Stopping 72t distribution

L1: Stopping 72t distributionMy husband retired in April, 2001 and drew his first 72t distribution in June, 2001. However at end of the year, the broker handling the distributions made a final distribution to himto make his total distributions for2001 be equal to a 12 month period. Therefore my husbands 5 year period ended on 12/31/05 and he is over 59 1/2. He has now received distributions for Jan thru April, 2006. Can thedistributionsfor Jan through April, 2006 be treated as normal IRA distributions or will he have to continue to take 72t distributions through May, 2006?2006-04-11 16:52, By: Shirley, IP: [64.57.238.131]
L2: Stopping 72t distributionI do believe that the five year period will end on 5/31/2006, not 12/31/2005. It starts with the date of the first payment and end about (365 times 5 plus 2) days later. The plus 2 is to account for any leap years.
Start by gathering the date of the first payment and the your husbands Date of Birrth and use the ”Last Payment Date”” calculator. It will tell you when the plan can end.
2006-04-11 17:50, By: Gfw, IP: [172.16.1.70]

L2: Stopping 72t distributionSince his 5 year period is not up till June xx, 2006, it appears that pre June distributions this year in excess of the annual SEPP amount would bust the plan. If there is any chance of that, he has a 60 day rollover window to move funds back into the IRA provided he has not used up his 12 month rollover.
After June xx, 2006 he can take as much or as little as he wants without penalty.

2006-04-11 18:13, By: Alan S., IP: [24.116.165.157]

L2: Stopping 72t distributionHi Shirley:
Eventhough your husband”s age may become 59 1/2during the 5-year SEPP distributions phase, you still have to complete the full 5-year time period under the SEPP rules, like GFW described. One thing that may cause problems is Form 1099-R coding by your IRA custodian after age 59 1/2.
Some custodians will continue to use Code 2 for distributions which they know are under 72(t) rules, even after the participant turns age 59 1/2, and will continue until notified to terminate using SEPP rules for the account. Other custodians will change to Code 1, Normal, for all distributions after age 59 1/2, and Code 2 for pre 59 1/2 distributions, so you will get two Form 1099-R”s for the age-change year eventhough SEPP is still in effect. Since this seems to apply to your situation, don”t get caught thinking SEPP is over just because your husband gets a Form 1099-R with Code 2. You still have to complete 1) five years of distributions and 2) actual age 59 1/2.
Jim2006-04-14 09:40, By: Jim, IP: [70.184.1.35]