72(t) Discussion Forum

By: TWISTSTEEL 17 Hours ago... Views: 41 Replies: 1 Last: 17 Hours ago... IP: 24.21.3.94

View Details    SEPP-72T,   Retiring next April. Federal Law -Enforcement =Early retirement. Age 50.Would love to use the annuity or interest on $300.000 that is currently in the government thrift program to go with my pension without tax penalty. .Looking at transferring all $300.000 to a IRA and then look to a SEPP (72T). Would hate to let the money just pile up until I ...

By: Mike 2010-09-08 20:15 Views: 34 Replies: 3 Last: 2010-09-08 22:44 IP: 68.35.66.94

View Details    Does Changing Custodians Mid-year Cause Any Problem,   Is it within the realm of 72t rules to change custodians before receiving the total annual distribution? I'm in the 1st year of my SEPP 72t plan and have recvd 3 of 4 quarterly payments so far. Is it okay If I change from current custodian and investment and transfer my entire IRA balance to a new custodian and investment and receive ...

By: Bill 2010-09-08 15:39 Views: 27 Replies: 2 Last: 2010-09-08 18:53 IP: 65.242.130.43

View Details    SEPP PLAN TERMINATION,   Hey guys, quick question:  Would a SEPP plan be considered "busted" with the 10% penalty assessed if the plan terminates prematurely due to the SEPP IRA owner's death?  Would the IRA beneficiary have to continue Sepp distributions until the later of 5 years or AGE 59 1/2? ...

By: Lone Wolf 2010-06-28 15:23 Views: 561 Replies: 17 Last: 2010-09-08 17:01 IP: 71.63.109.206

View Details    72T,   Your website cautiously but clearly recommends using a specialist of some kind to make the 72T calculations for me.  I have learned a lot about what I am trying to set up but I realize, in order to avoid costly errors, I need assistance.   I have tried unsuccessfully to find someone who offers this service!  My IRA i ...

By: Rick 2010-09-07 16:16 Views: 47 Replies: 2 Last: 2010-09-07 17:39 IP: 67.172.228.229

View Details    Additional Distribution,   Hi, I have been using a 72(t) distribution for 3 years now. But I have a short term (non-emergency) financial need.  Can I take an additional amount out of my 401k and pay the penalty on that extra disbursement without jeopardizing my ongoing 72(t) status. ...

By: Pete 2010-08-31 06:42 Views: 268 Replies: 25 Last: 2010-09-04 22:52 IP: 70.180.202.207

View Details    72 (t) SEPP Internal Account Change,   I established an IRA 72t SEPP account in January 2006.  There are 3 individual accounts within it:  a variable annuity, a prime account, and a brokerage account. The prime account is the largest and is all invested within the same account number (an actively managed mutual fund model).  This account number is limited to th ...

By: Chuck 2010-09-03 02:05 Views: 200 Replies: 11 Last: 2010-09-04 21:35 IP: 75.107.98.105

View Details    IRS SEPP Audit,   I have not posted here before but have read the information on this site. I thought some of you might be interested in this. I had been looking at an SEPP since the late 1990's and I have two friends who have completed their SEPPs. My 2008 tax return was audited because I'm now taking an SEPP. Fortunately the outcome for me was a "No Change" l ...

By: rosa 2010-09-02 18:00 Views: 146 Replies: 19 Last: 2010-09-03 23:29 IP: 173.77.204.187

View Details    72t year end,   Hello:  If I were to set up a 72t this month and take a lump sum payment does that mean that my year one is 2010?  And my end date of the plan would be Sept. 2014?  Or is the end date of the plan August 2015 which is when I turn 59 1/2? ...

By: Maverick 2010-09-01 15:27 Views: 84 Replies: 5 Last: 2010-09-02 18:17 IP: 63.66.47.212

View Details    Account balances to use,   Is there any specific account balance date that must be used in order to calculate a 72(t) or 72(q).  It seems to be open for interpretation although logic would dictate if using the RMD method to use the 12/31 balance. I am contemplating using the prior months balance.  Any thoughts? ...

By: rosa 2010-09-01 15:27 Views: 85 Replies: 3 Last: 2010-09-02 17:47 IP: 173.77.204.187

View Details    Setting up a 72T,   Hello:  I am interested in setting up a 72T and will be meeting with someone to do so.  However, I wanted to do some preparation before I do.  According to this site I may use the rate of 2.83 for my calculations.  But the AFR tables says that the rate for Sept 2010 is 2.33.  My question is which rate may I use?  Also, ...

By: Bill 2010-08-30 20:11 Views: 103 Replies: 5 Last: 2010-08-31 20:42 IP: 65.242.130.43

View Details    SEPP-RELATED 1099 FORMS,   One more question guys.  What is the IRS 1099 form code I should ask my SEPP custodian to use for reporting those distributions?  If they don't code it properly, do I have to include a separate IRS tax form along with the usual annual 1040's to confirm they are "non 10% penalty" distributions? ...

By: Maverick 2010-08-27 13:02 Views: 97 Replies: 9 Last: 2010-08-30 23:10 IP: 63.66.47.212

View Details    72(q) and the one year,   Hi All, Thanks for the great site.  I want to set up a 72(q) from a non-qualified annuity that has been around longer than one year.  Will this work?  Going through the IRS codes I noticed a section which points out that payments must begin within one year of the annuity opening date.  I was not sure if this applied t ...

By: Bill 2010-08-30 18:16 Views: 75 Replies: 2 Last: 2010-08-30 19:35 IP: 65.242.130.43

View Details    72t distribution schedule,   Great info on your website - thanks for sharing it!  I'm now 54 1/2 years old and am thinking about starting a 72t sepp this October.  According to your calculator, a $500k IRA balance at the max rate of 2.62% for plans beginning by 10/31/10 would yield $24,010 in annual distributions under the amortization method.  My question ...

By: Chipinsd 2010-08-30 17:42 Views: 60 Replies: 2 Last: 2010-08-30 19:30 IP: 69.198.104.166

View Details    early withdrawal of Roth IRA,   I am 55 and laid off for over 15 months.  I moved two 401K prgrams to my Roth (2009/paid taxes & 2010/due).  I might be needing to support my expenses.  I understand that I can use for kids college costs & private health insurance premiums without the penalty? ...

By: h 2010-08-25 20:12 Views: 122 Replies: 5 Last: 2010-08-26 21:48 IP: 96.56.201.114

View Details    Monthly Distribution Calculation,   Any input is appreciated and please correct me if I am wrong: To figure out my monthly SEPP payment would basically be just dividing my annual amount by 12, correct?  I just want to confirm there is no other type of calculation I need to do.  Also, after calculating my monthly payment, I am able to take monthly pay ...

By: h 2010-08-25 20:16 Views: 84 Replies: 5 Last: 2010-08-25 20:55 IP: 96.56.201.114

View Details    IRA Account Balance for 72(t),   One more question, I do not have to wait until a specific day to calculate my 72t payments, correct?  I'd like to start mine before Sept 1 to ensure the higher rate, so I would base it off of 8/26 or 8/27's account value and just keep a print out of the account balance that illustrates the date since a new statement is not available until 8/ ...

By: Don 2010-08-25 15:18 Views: 99 Replies: 1 Last: 2010-08-25 18:40 IP: 66.188.38.242

View Details    Stub year,   Can someone please explain how the first (stub) year works?  I am 52.  My 72t distribution will be @$3,500/month.  If I begin my 72t next month (September), can I receive 12x$3,500=$42,000 in 2010?  Or am I limited to just 4 months x $3,500=$14,000 in 2010? ...

By: Gfw 2010-08-22 12:50 Views: 96 Replies: 2 Last: 2010-08-25 15:25 IP: 24.148.10.164

View Details    September 120% Mid-Term Rate,   September, 2010... 120% Mid-Term = 2.33%, Applicable Federal Rates for 72(t) and 72(q) distributions. Click HERE ...

By: Jim 2010-08-24 14:41 Views: 98 Replies: 3 Last: 2010-08-24 21:54 IP: 64.12.116.72

View Details    72t payments be effected by moving 401k to different finacial institution,   If you started collecting 72t payments from your 401k years ago with a certain financial Investment firm ,that at that time had/used a higher actual interest rate used to calculate the 72t payments, can you transfer your money to a new financial investment firm and still keep the same actual interst rate used back then, or do you have to use t ...

By: Mike 2010-06-22 01:55 Views: 216 Replies: 7 Last: 2010-08-24 02:25 IP: 72.219.253.31

View Details    SEPP/Roth Conversion,   Thank you so much for this site. My DOB is 12/28/1950 and my first 72t SEEP distribution was made 5/8/2006 with four more annual didtributions each year after that. Is there any chance that I would be able to convert funds from this IRA account this year to a Roth IRA to take advantage of the 2010 income rules and the ability to spread taxes due ov ...

By: Rupertdacat 2010-08-23 14:43 Views: 117 Replies: 6 Last: 2010-08-23 21:08 IP: 66.41.166.199

View Details    Monthly SEPP,   I wish to take SEPP monthly for 60 months (current age 55).  If I take my first SEPP on 8/25/2010, must I wait till the 25th of all subsequent months to take subsequent SEPP? Thank you.   ...

By: Terry S. 2010-08-23 09:31 Views: 45 Replies: 0 Last: 2010-08-23 09:31 IP: 24.148.10.164

View Details    Traditional IRA CONVERSION to ROTH,   CAN I CONVERT SOME OF MY TRADITIONAL IRA TO A ROTH?   I am not yet 59 1/2.   Last year I started taking SEPP from my traditional IRA. ...

By: FreddyL 2010-08-15 01:52 Views: 176 Replies: 2 Last: 2010-08-15 03:24 IP: 72.202.144.238

View Details    401K withdrawl at 55 ?,   I am planning on retiring at 55 and have $450,000.00 in a 401K which I must take in a lump sum. I have been told to roll it into an IRA and setup a 72T withdrawal for 5 years. How much can I take out monthly and avoid penalties. I do have some other sources of income but need to draw from this to supplement. Do I have other options for wi ...

By: petey 2010-08-12 21:46 Views: 93 Replies: 2 Last: 2010-08-13 01:38 IP: 76.189.255.205

View Details    defined benefit plan,   my wife is 52 and currently has some money in a defined benefit plan at a previous job she never contributed to it  she was told she couldn't touch it until she was 55 we were wondering do they allow you to withdraw early for hardship situations such as to save your home as in our case ...

By: Bob85364 2010-08-11 20:41 Views: 127 Replies: 4 Last: 2010-08-12 20:46 IP: 24.148.10.164

View Details    Stub year Question.,   Hi all,  I plan to start my SEPP this month to take advantage of the 3.27% interest rate. Since I really don't need the money until 2011 (when I origionally was planning to start my plan) I plan to take a stub year (5 months) distribution this year. Another avantage is I turn 59.5 on Aug 3, 2015. (DOB: 2.3.56)  ...