72t problem any correction
Accidental rolled over money out from an account I was taking a 72t distribution before age 591/2. Anyway to fix this problem passed 60 days less than a year.
Accidental rolled over money out from an account I was taking a 72t distribution before age 591/2. Anyway to fix this problem passed 60 days less than a year.
Permalink Submitted by Alan - IRA critic on Mon, 2020-01-13 16:18
Please clarify. If you rolled over part of your 72t distribution to another plan outside of the 72t plan, then you have busted the plan and owe the penalty on all penalty free distributions you took from the start of the plan. This is true even if you took another distribution in 2019 so that the 1099R forms less the amount of the rollover equals your 72t distribution, since you cannot move funds to an outside plan during the course of your 72t plan. You would have to report the plan busted on Form 5329 with your 2019 return and pay the penalties. Busting the plan ended the plan on the day you rolled over funds to an outside plan. If I misunderstood what you actually did, please advise.