72(t) Discussion Forum

By: statmanbill 2010-03-10 17:10 Views: 44 Replies: 3 Last: 2010-03-10 21:52 IP: 24.56.39.150

View Details    moving part of IRA account that is making the 72(t) distribution,   I started making 72(t) withdrawals last year and chose Fairholme Funds, both because of their outstanding record and their willingness to code the 1099R with a '2'.  I have 4 four years to go before 59-1/2.  I would like to move some of their fund laterally to an IRA in a new Fairholme fund.  I will still have way more than a su ...

By: daiglel 2010-01-10 13:41 Views: 449 Replies: 13 Last: 2010-03-10 00:52 IP: 216.80.125.206

View Details    IRS Audit,   I started a SEPP plan for my wife in November, 2007. I was a tax-preparer back in the 1980’s so I felt confident that I could do this myself if I committed the time to educate myself. I spent several weeks doing research prior to developing the plan. I found that this web-site was my best so ...

By: Bruce M 2010-03-09 15:33 Views: 51 Replies: 3 Last: 2010-03-09 20:30 IP: 68.36.153.56

View Details    IRA''s to be included,   I am going to do a SEPP.  Currently my wife & I have ROTH, regular IRA, & a SIMPLE plan. My question is do I include all of them in the total, or just IRA and SIMPLE? ...

By: Neil 2010-03-09 15:58 Views: 43 Replies: 1 Last: 2010-03-09 16:47 IP: 98.213.77.155

View Details    Precise amount taken a requirement?,   Once the required amount of the SEPP is determined, can more be taken annually with only the SEPP amount not penalized?  Or does the total amount become subject to the penalty if even the required amount is off by $1? ...

By: buzzles 2010-03-02 14:47 Views: 195 Replies: 11 Last: 2010-03-09 15:27 IP: 72.226.122.31

View Details    busting a 72t,   I have been in a SEPP 72t for 20 months and draw my allotment from two IRA's if I drew too much from 1 of my IRA's will I be penalized on all the funds I have drawn out. If this has busted my 72t is there any way to fix it or will I have to pay penalties on all the funds I take out. ...

By: Robert 2010-03-08 19:00 Views: 52 Replies: 1 Last: 2010-03-08 19:10 IP: 216.80.125.206

View Details    72t calculation,   Is it permitted to use a rate lower than 120% of the federal mid-term rate in calculating a SEPP? We would like to take a withdrawal that is less than the amount shown by the 72t calculator. Is this allowed as long as we document the interest rate that is lower than 120% of the current federal mid-term rate? Our intent is to use a lower ...

By: johnnyg 2010-03-08 15:49 Views: 62 Replies: 1 Last: 2010-03-08 16:25 IP: 66.232.90.254

View Details    120% rate,   My financial institution calculated the rate for March at 3.38% instead of 3.39% as published by the IRS.  Will I be busted for using the 3.38% if they refuse to use a 3.39% rate?  Thanks in advance. ...

By: Sonray 2010-03-06 01:46 Views: 125 Replies: 8 Last: 2010-03-06 19:48 IP: 66.141.234.112

View Details    Forgot to take my 2009 SEPP payment,   I am 53 years old and have been taking an equal payment from my IRA SEPP since 2000.  I forgot to take it for 2009 but, have taken it in all past years.  I took the payment for 2010 in January.  I did not notice this untill I started to do my income tax and there was no 1099R.  Can I take a make up distribution for 2009 in 2010? ...

By: mstar 2010-03-05 14:16 Views: 59 Replies: 3 Last: 2010-03-05 18:53 IP: 74.103.53.193

View Details    Balance to use for SEPP,   I purchased a variable annuity with my rollover IRA.  I would like to know if I should use the amount used to purchase the annuity or the current balance in the investment portfolio as the balance to start my SEPP.  Thanks for the great job that you do on this web site. ...

By: JW 2010-03-02 16:29 Views: 82 Replies: 4 Last: 2010-03-05 18:40 IP: 68.5.249.111

View Details    SEPP distributions from non-qualified plans,   My wife and I are nearly 54 years old and jointly purchased a NON-qualified Variable Annuity in the 1990s that we now take SEPP distributions from. Should the SEPP distributions be allocated between earnings and cost or should the entire amount be allocated first to earnings until exhaused and then to cost? ...

By: Art 2010-03-03 17:01 Views: 96 Replies: 3 Last: 2010-03-03 22:15 IP: 74.235.133.130

View Details    Changing SEPP tax deductions,   My wife has just reached age 59 1/2 and has been withdrawing on her SEPP for over 7 years.  She wants to increase her monthy gross distribution amount and at the same time increase her federal and state tax percentage.  She was told by Merrill-Lynch that she can not change it until the end of the year.  Is that correct??? ...

By: Charlie 2010-03-03 01:07 Views: 104 Replies: 4 Last: 2010-03-03 03:03 IP: 173.51.109.62

View Details    ANY rate below the 120% of mid-term fed,   In Feb 2008 started SEPP on IRA. Value was at $617800, age 53. At that time the max rate was 4.97%. That would have given a monthly rate around $3250. I rounded down to $3000 which would have been a rate lower then the feds max, about 4.25%. The IRA administrator gave me a 1099-R coded 2(SEPP) for '08 but for '09 it showed code 1 due to the fact ...

By: Bob 2010-03-01 21:31 Views: 54 Replies: 1 Last: 2010-03-02 03:53 IP: 64.190.42.163

View Details    Restarting 72 payment,   #1Individual deposited funds into an IRA in September of 2009.  Immediately withdrew about $35,000 for condo purchase. Individual then started 72 distribuiton later in September and also for months of October, November, December 2009, and Janaury 2010.He/she did not take a distrib ...

By: Bob 2010-03-01 21:34 Views: 53 Replies: 2 Last: 2010-03-02 03:52 IP: 64.190.42.163

View Details    Restarting 72 payment,   #1Individual deposited funds into an IRA in September of 2009.  Immediately withdrew about $35,000 for condo purchase. Individual then started 72 distribution later in September and also for months of October, November, December 2009, and January 2010.He/she did not take a distrib ...

By: telcoguy 2009-12-01 15:17 Views: 485 Replies: 21 Last: 2010-03-01 02:00 IP: 71.126.7.207

View Details    Is a Stub Year allowed?,   If I start a 72t plan on an IRA in June 2010 do I have to take the entire annual calculated ammount in 2010?  I prefer to start monthly payments in June that are 1/12th the calculated annual amount and continue those payments for the next 7 years until I am 59.5.  If I do that the first year will be a 7/12 "stub"  year.

By: Jimbo 2010-02-27 02:05 Views: 71 Replies: 3 Last: 2010-02-27 21:30 IP: 207.200.116.66

View Details    Changing Trustees,   Currently I have a SEPP with a large "full  service" broker.  There are 2 IRAs in the SEPP universe consisting of mutual funds and stocks.  The stocks pay dividends quarterly.  I'd like to do a direct transfer to a discount broker and have the transfer be "in kind", I don't want to sell and then transfer the dollar amount (the ...

By: Jimbo 2010-02-25 22:41 Views: 71 Replies: 2 Last: 2010-02-26 00:53 IP: 207.200.116.66

View Details    Covered Calls,   Within a SEPP plan, can you write covered calls against the stock that you own in the IRA?  It seems to me to be OK, but worth asking the question.Thank You. ...

By: PHS 2010-02-25 16:51 Views: 97 Replies: 2 Last: 2010-02-25 19:00 IP: 144.160.130.16

View Details    annually recalculated amortization plan,   When reading "The Practical guide to SEPP" I found a section stating that it is OK to split my IRA into (2) 72t's. One that uses the fixed amortization method and a second that uses the amortization method that is recalculated each year. The flexibility (in a volatile market) afforded by this strategy seems attractive, but I am conc ...

By: johnnyg 2010-02-24 17:15 Views: 110 Replies: 2 Last: 2010-02-24 18:21 IP: 66.232.90.254

View Details    Total IRA Account Balance vs Amount Allocated to SEPP Plan,   When calculating the SEPP for ONE account can the Total IRA balance of that account be different from the Amount allocated to the SEPP Plan?Example, IRA Account for SEPP has a balance ending 31 Dec 2009 is 750,000.  Amount Allocated to SEPP in this account is 500,000.  Calculations made for 500,000 at 3% is 23581.  I ...

By: JDW 2010-02-24 13:57 Views: 72 Replies: 1 Last: 2010-02-24 17:45 IP: 63.197.53.189

View Details    72t distribution from one account when you have multiple accounts,     If I include more than one account, which accounts do I use to make the payments? This is a question on this website but the answer references PLR 9705033 and stat ...

By: RG 2010-02-24 01:13 Views: 86 Replies: 1 Last: 2010-02-24 01:36 IP: 24.101.213.182

View Details    72T and contributions,   Can you contribution to an IRA if you are taking 72T distributions?If answer is no, can you open another IRA and contribute to it?  ...

By: Gfw 2010-02-21 16:08 Views: 73 Replies: 1 Last: 2010-02-21 19:18 IP: 216.80.125.206

View Details    Offtopic - Twitter,   Having a little free time this morning, I started playing with Twitter.Com - mainly because on the 2 most commonly used search engines (Bing and Google), you get better rankings if you also participate in a few social networking sites. We may try to add forum posts as tweets sometime next week. If you use Twitter, you can no ...

By: ayrshires 2010-02-19 15:28 Views: 162 Replies: 5 Last: 2010-02-20 04:02 IP: 75.185.77.5

View Details    1099-R,   Box 2a in my 1099-R is blank for tax year 2009.  For tax years 2006, 2007, and 2008 the amount in box 2a was the same amount as reported in box 1.  Box 2b has been checked in all 4 years, and box 7 has always been marked "2".  I've always had 10% withheld from my gross distribution.  Turbo Tax is not considering the distribution ...

By: gfw 2010-02-19 19:42 Views: 70 Replies: 0 Last: 2010-02-19 19:42 IP: 216.80.125.206

View Details    March Interest Rate,   March, 2010... 120% Mid-Term = 3.23%, Applicable Federal Rates for 72(t) and 72(q) distributions. Click HERE ...

By: johnnyg 2010-02-19 16:02 Views: 62 Replies: 2 Last: 2010-02-19 16:54 IP: 66.232.90.254

View Details    Face Value vs Mkt Value,   If the face value of municipal bonds in my portfolio are 100k and the market value is 90k.  If I use the face value of the bonds for my IRA balance calculations will this be a "bust"?  Thank you ...