Stub year

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L1: Stub yearCan someone please explain how the first (stub) year works? I am 52. My 72t distribution will be @$3,500/month. If I begin my 72t next month (September), can I receive 12x$3,500=$42,000 in 2010? Or am I limited to just 4 months x $3,500=$14,000 in 2010?2010-08-25 15:18, By: Don, IP: [66.188.38.242]
L2: Stub yearEither one. Both of your calculations are correct, and either is permitted at your option.
It depends upon your cash flow needs, and your tax situation for 2010.
Suggestion make sure to take your Dec payment by 12/15 in case your total withdrawn for 2010 is incorrect. ( Similarly for future years.)
By the way, you can take distributions in any year at whatever frequency you want, so long as the total for the year is correct.2010-08-25 18:40, By: dlzallestaxes, IP: [72.78.110.86]