Age 59.5 withdrawal from IRA and Annuity
I have a client who will be 59.5 in June 2015. She needs to draw funds from her IRA and her annuity. She can wait until 2015 but it would be nice if she could withdraw prior to June. If she does will the custodians code her w/d as an early distribution on her 1099? I’m assuming this is the case but since I’ve got such great info from the gurus that answer questions on here I thought I’d throw the question out to see the comments I always find very helpful.
Once again thank you very much in advance!
Permalink Submitted by tomd37 on Thu, 2014-10-30 18:49
It has been my experience in preparation of tax returns that the custodian issuing the 1099R will use code 1 (early distribution) in box 7 thus resulting in a penalty situation unless exception circumstances exist. They know the birthdate of the taxpayer. I would suggest the client wait until one day after she reaches the age of 59.5. Tom D.
Permalink Submitted by steve harper on Thu, 2014-10-30 21:29
Thank you! At least she doesn’t have to wait until 60