withdraw after 59 1/2 while still on 72t
L1: withdraw after 59 1/2 while still on 72tI am 58 1/2 and have been drawing money from my IRA for 2 years. Still have 3 years left.When I turn 59 1/2next year I will still have 2 years left on my 72t. The question is, can I withdraw a lump sum amount, if needed, while I’m still locked into the 72t?2010-07-06 23:30, By: bob, IP: [18.104.22.168]
L2: withdraw after 59 1/2 while still on 72tShort Answer… No. Until the plan is complete, any additional distribution will bust the plan (penalties & interest) from day 1. The positive is that the 10% will only apply to distributions that occured prior to age 59.5.
Use our first modification date calculator to determine the exact date when your plan will end.2010-07-06 23:41, By: gfw, IP: [22.214.171.124]
L3: withdraw after 59 1/2 while still on 72tHowever, you might have an out if you qualify for any of the other exceptions to the 10% penalty rules.
2010-07-07 00:53, By: dlzallestaxes, IP: [126.96.36.199]
L4: withdraw after 59 1/2 while still on 72tThe prior responses are correct, but they do assume that your “lump sum” will result in exceeding your annual 72t distribution.But if you merely want to take your annual distribution as a lump sum, you can do that and you can do it in any month of the year. The key is that your total annual distributions cannot exceed the correct annual amount.Now, if you have no other option but to bust your plan, try to postpone distributions in the year you reach 59.5 until after that date because those distributions will not be penalized. But they do cause all your earlier penalty free distributions to be penalized and interest charges will also be billed by the IRS for the late payment of those penalties.2010-07-07 01:31, By: Alan S., IP: [188.8.131.52]
L4: withdraw after 59 1/2 while still on 72tDLZ,I think the poster said they started 2 yrs ago and are now 58 1/2, so they started at 56 1/2.2010-07-07 03:14, By: Ken, IP: [184.108.40.206]
L5: withdraw after 59 1/2 while still on 72tOOPS !!! I could blame it on the > 100 degree heat, but actually since only the last posting comes up when you reply, I remembered 58, but not the full context. Good catch.2010-07-07 13:24, By: dlzallestaxes, IP: [220.127.116.11]