L1: Stopping 72tI started taking a 72t distribution in 2003 so I’ve met the 5 year rule. I want to stop the distribution as soon as I can without busting the 72t.
My birthday is 4/19/1954 so the first modification date is 10/20/2013.
I can take the distribution in any way I want, currently a lump sum in January.
Am I required to take the entire distribution or a prorated amount, or since the modification date is in October not take any distribution at all in 2013?
Or to be safe, take the entire amount for 2013 and then stop in 2014?2009-12-06 22:57, By: wooly, IP: [220.127.116.11]
L2: Stopping 72t
There are some options in your case that complicate this issue. For me, keeping things as simple as possible not only makes it more likely that my SEPP will end without any problems but also makes it less likely that I will attract any unwanted IRS attention. The 1st modification date calculator pretty much sums it up… make no mods before this date.
You’re right that you *could* take a prorated amount up to 10/20/2013 but look at the fact that this is only about 6 weeks prior to the end of the year. Not taking six weeks worth of SEPP payments does not seem a sufficient reward for possible problems with this. If it was me, I would take the full 2013 payment whenever in 2013 you want and call it done and over in January 2014.
I turned 59.5 last Feb and my SEPP 5 year period will end on 3/15/2010. It is likely that I will continue to take my usual SEPP payments until 2010 ends. The amount works for me and I have no pressing need for additional funds. Doing this will ensure that my final SEPP 1099-R shows the same amount distributed as the other SEPP years. Not that this is necessary but I will feel a bit safer doing it this way. If I needed to change the amount distributed, I would probably feel differently about this.
2009-12-07 01:42, By: Ed_B, IP: [18.104.22.168]
L3: Stopping 72tWooly,Alan S responded to NETJETTY’s recent post with a similar question and clarified my response. He is very knowledgeable. It has the specific info you are requesting in terms of your options, since you are in a similar (more than 5 years of payments) situation that netjety is in, due to your starting age. KEN2009-12-07 03:22, By: Ken, IP: [22.214.171.124]