Breaking a 72T

Submitted by MIKE JANKOWSKI on Thu, 2018-08-23 20:21

I have a 72T on one of my accounts, i have since found out that i cannot take any money out of that account and im considering breaking the 72T. I have had the 72T for about a year so having to pay the 10% penalty is not really an issue as it isnt that much. My question is will i be assessed any type of fine by the IRS for breaking it ? Thanks



Submitted by Alan - IRA critic on Thu, 2018-08-23 22:47

You will owe retroactive penalty and interest, and that should be all. You report the retroactive penalty on the current return, no need to amend the return for a prior year. Also, keep in mind that if you qualify for a different penalty exception than the SEPP exception, you can claim that exception and reduce the penalty. This is done on Form 5329.  

Submitted by MIKE JANKOWSKI on Fri, 2018-08-24 11:33

Im not sure on the other penalty exception, but you have answered my question,Thanks

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