Two Traditional IRAs – 72T on one and withdrawl from other?
Here’s the scenario. I have two traditional IRAs, both established in 2010 at the age of 54.
IRA-(A) I started a 72T In May 2011. It has run for 4 years-10 months without any other additions or withdrawals.
IRA-(B) I have withdrawn small amounts periodically ($10,000 and below) and paid the 10% penalty.
As of last month I turned 59 1/2 and would like to withdrawal money from IRA-(B). Can I now do so without paying the 10% penalty since I am now beyond 59 1/2 even though the 72T running in IRA-(A) wont reach its 5-year completion for a few more months?
Thanks You,
Mike
Permalink Submitted by Alan - IRA critic on Sat, 2016-03-19 20:17
Yes, distributions from IRA B are penalty free after 59.5 and they do not affect your 72t plan. While you can also take unrestricted distributions from IRA A starting in June because your 72t plan will have ended, it will simplify your tax reporting if you continue to take your extra distributions from B for the rest of the year.