72t’s

Submitted by Zachariah Hammel on Fri, 2015-04-10 16:16

Can a 72t be initiated on a current 401k? How about an existing 401k from an old employer that no longer takes in contributions? I just need a little clarification on this subject!

Thanks



Submitted by Alan - IRA critic on Fri, 2015-04-10 17:41

Since a 72t plan account cannot receive contributions and current plans are not likely to offer periodic distributions, a 72t plan is not workable. For a former employer, the main hurdle is that the plan must offer periodic distributions, therefore a former plan is more viable, but still not as flexible as an IRA for a 72t plan.



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