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what are my future 72t options having now surpassed the 5 yr/59.5 rule…

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ByJosh

L1: what are my future 72t options having now surpassed the 5 yr/59.5 rule…My first distribution was in 2004 (based on account balance as of 12/31/2003).
My latest distribution was in 2010 (based on account balance as of 12/31/2009).
I turned 59.5 in January 2010.
Can I simply continue? Can I stop? Can I change distribution methods?
Please advise. Thanks.
2011-01-11 22:41, By: Josh, IP: [75.171.202.193]

L2: what are my future 72t options having now surpassed the 5 yr/59.5 rule…Your plan automatically ended on the plan modification date, which was the day after you reached 59.5 around a year ago. Now, and in 2010 after your modification dateyou can distribute as little or as much as you wish and there is no penalty since you are over 59.5. The plan is history, but keep your documentation for at least 5 years just in case the IRS has a question.
How much did you take out in January, 2010 PRIOR to your modification date? And you also took out distributions in 2010 after the modification date?2011-01-12 03:42, By: Alan S., IP: [24.119.230.17]

L3: what are my future 72t options having now surpassed the 5 yr/59.5 rule…In January 2010 I took out the “minimum distribution” PRIOR to my modification date. And I took out nothing in 2010 AFTER my modification date.2011-01-12 04:30, By: Josh, IP: [75.171.202.193]

L4: what are my future 72t options having now surpassed the 5 yr/59.5 rule…Josh,
Not sure if your custodian was issuing 1099-R’s with code “2” or “1′, but I would suggest before taking any more money that you point out to them your 72t is over, and you want normal distributioncode “7” on any future withdrawal 1099-R’s. As Alan said, you don’t need to use any special formula for withdrawals after the 72t ends, and prior to age 70 1/2. You can set up a plan for regularpmnts, or take money when you choose, and amount you take is not an issue. Ken2011-01-12 18:05, By: Ken, IP: [71.192.121.212]

L5: what are my future 72t options having now surpassed the 5 yr/59.5 rule…All my past 72t withdrawals were 1099-R’s with code “2”. I will affirm with my custodian the switch to normal distribution code “7” on my future withdrawals. Ken and Alan, I thank you. josh2011-01-12 18:39, By: Josh, IP: [75.171.202.193]

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