taxes and penalties
L1: taxes and penaltiesOn an existing 72t plan what would be the approximate taxes, penalty and interest if a person takes an additional $40,000 One Time Distribution?
Plan started 6/23/2008
June 20, 2016 72t expires
Current Monthly Distribution on the 72t
$1,451.27 Gross monthly Distribution
$159.63 monthly tax withholding
$1291.64 net monthly distribution2015-06-05 18:21, By: BRS, IP: [220.127.116.11]
L2: taxes and penaltiesAssuming you have taken 84 monthly distributions, you have taken $ 121,907 so far. Since you would be busting the plan, you would owe $ 12,190 (10%) in penalties, and probably $ 10,000 (25%) in taxes. That’s $ 22,190 that you won’t have, and only $ 17,810 that you can spend.
Obviously you should go to plan B to get you to next June when you will save the $ 12,000 penalty.2015-06-06 01:42, By: dlzallestaxes, IP: [18.104.22.168]
L3: taxes and penaltiesWe cannot provide an exact figure for the late interest charged due to the late payment of the accumulated penalty, but if you applied the weighted quarterly underpayment rates to the accumulating penalty balance, the resulting interest due would be somewhat less than 2,000.2015-06-07 03:43, By: Alan S, IP: [22.214.171.124]
L2: taxes and penalties72t Distribution Calculator: Use section 72t, 72q calculator to allow for penalty free early withdrawals from retirement accounts under certain circumstances.2015-07-15 09:27, By: Kalegley, IP: [126.96.36.199]