taking a regular distribution after the last 72t distribution

L1: taking a regular distribution after the last 72t distributionIf a 72t started 4/1/2006 as the first distribution, therefore the last distribution was 3/1/11, can the person take a distribution anytime after that 3/1/11 date after the last 12 payments were taken in the 5th year (as she is now over 59 1/2) or does she have to wait until after 4/1/11 to take a regular distribution? How can this be undone if thisdid trigger a penalty? Can she use he 60 day rollover to roll back the recent distribution?THank you!Tracy2011-03-31 22:52, By: Tracy, IP: [69.0.72.147]
L2: taking a regular distribution after the last 72t distributionThe 5 years ends on 3/31 – wait until 4/1before taking anything additional.2nd question… not enough information. Does she qualify for a rollover?2011-03-31 23:24, By: Gfw, IP: [24.148.10.164]

L3: taking a regular distribution after the last 72t distributionif a distribution was taken after the final 72t distribution already, but before 4/1, what can be done?thank you2011-03-31 23:40, By: Tracy, IP: [69.0.72.147]

L4: taking a regular distribution after the last 72t distributionTracy:Would I be correct in assuming a distribution LARGER THAN NORMAL was taken between 3-1-2011 and 4-1-2011? If so will the sum of ALL distributions to date in 2011 exceed the calculated annual distribution? If it does not then you are OK since you may take an entire, annual distribution and there is no need to do the 60-day rollover back into the IRA.Now, to clear things up properly, like Gordon asked, please give us specific details about what has happened.Jim2011-04-01 00:17, By: Jim, IP: [70.167.81.119]

L5: taking a regular distribution after the last 72t distribution72t started 4/1/06 and 60 distributions were taken accoding to the SEPP calculation on her IRA. Her last 60th distribution was 3/1/11. SHe is now over 591/2 and took the calculated 60distributions for the 5 yr period. On 3/18 she took a distribution of $22,000 now that the SEPPP was done. SHe did not wait until after 4/1/11 which would be exactly 60 months time wise or 5 yrs. Her 60 payments were for $1440 per month from 4/1/06-3/1/11.thank you2011-04-01 01:53, By: Tracy, IP: [71.139.143.183]

L6: taking a regular distribution after the last 72t distributionIt appears she has taken $9,040 too much for CY 2011 ($1,440 X 12 = $17,280 annual SEPP distribution. CY 2011 looks like this: $1,440 X 3 = $4,320 + $22,000 = $26,320 – $17,280 = $9,040)Looks like she needs to use the 60-day rollover to put$9,040 back into the SEPP IRA. After this is done she can take another distributionfor $9,040 after 04-01-2011, which is today. Of course the “rollover in” will have to be on one day and the new “distribution” will have to be on the next day.I would appreciate it if one of the other guys /galswould double check my math and concept. We are all subject to missinterpreting and math errors.Jim2011-04-01 16:56, By: Jim, IP: [70.167.81.119]

L7: taking a regular distribution after the last 72t distributionJim’s math is fine as is his conclusion. The rollback must be for either the full 22,000 or for 9,040. What would remain is either 3 months of distributions or the full annual amount of 17,280, both of which are options permitted in the final stub year of a 72t plan.Further, ifshe doesnot qualify for any rollover becauseshe did a prior rollover from this account within the last 12 months, there is still a solution to the problem. She would have to convert the amount intended to be rolled back to a Roth IRA and then recharacterize the conversion back to the SEPP TIRA. The reason this works is that conversions and recharacterizations do NOT count toward the one rollover limit. Hopefully, she will not need toresort to this procedure.2011-04-01 17:17, By: Alan S., IP: [24.119.230.17]