Turning 59 1/2 while taking 72T

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L1: Turning 59 1/2 while taking 72TI have 11 months left on my 72T. I turned 60 last November. My custodian who is also my former employer sent me 2 1099Rs. The distribution code on 1 is a 2(early dist. w/exemption) the other is code 7 (normal) when I turned 59 1/2. Is this correct? They claim the rule is 5 years or 59 1/2 whichever comes first. I am not changing my distribution until the 5 year period is over but I do not want any problems with the IRS reporting.2010-01-29 17:02, By: Dennis J, IP: []
L2: Turning 59 1/2 while taking 72TIt would be nice if they were right, but they are not. A SEPP plan ends later of 59.5 or 5 years. Here is where they may beright – once you reach age 59.5, thereis no more 10% penalty. However, if the plan is busted prior to the end of the 5 years, the 10% still applies to all distributions before age 59.5.2010-01-29 17:13, By: Gfw, IP: []

L3: Turning 59 1/2 while taking 72TThank you for the reply. My end date is 12/31/2010. As long as I leave all alone until after Jan.2011 all should be ok regardless of how they code the 1099s?2010-01-29 17:46, By: Dennis J, IP: []

L4: Turning 59 1/2 while taking 72TYes, you should be OK with any Code 7 for amounts received after age 59.5, because that is the correct code whether your plan remains valid OR your plan has ended. But if you get a code 1 and your planremains valid, then you will need a 5329 to change it to a 7 for post age 59.5 distributions or to code 02 for pre 59.5 distributions.In other words, after you reach 59.5, the only code you need to worry about is Code 1, which means the custodian is saying your plan is busted. If you happen to get a Code 2 after age 59.5, it probably is not worth messing with since it would not result in a busted SEPP or a penalty.2010-01-29 18:43, By: Alan S., IP: []

L5: Turning 59 1/2 while taking 72TThank you so much. You guys are great!2010-01-29 18:58, By: Dennis J, IP: []