First Normal Distribution From IRA Account
I’m retired, will turn 59 1/2 on 9/30 (DOB 3/30/49), and plan to request my first IRA distribution — ~$10k from my cash balance — on 10/1/08. To me, this looks like a pretty straight-forward and safe move. However, I wanted to run this by you first to make sure that I am not overlooking something. Do you see any potential pitfalls in this distribution plan? Thank you in advance for your response.
Permalink Submitted by Denise Appleby on Fri, 2008-09-26 14:32
There should be no problem with this. You reach age 59 ½ six months after the 59th anniversary of your birthdate. But to play it safe, why not wait a day or two more? Some firms program their system using days , instead of months. Which means they would say you reach age 59 ½ 183 days after your 59th birthday. They may make the adjustment if the distribution is reflected as early instead or normal, or they may refuse to make the adjustment. Why risk it? It’s just not worth the trouble.