IRA 72t SEP

Submitted by Anthony Cebalo on Fri, 2023-09-29 16:01

I inadvertently “overdrew” $600 more from my IRA account than my 72t calculation allowed. However, I caught it and deposited the $600 back into the same IRA account 2 days later. Will the IRS say I broke my 72t and have to pay the penalty?

Ex:

Calculated 72t amount = $16,000

Withdraw = 16,600

Redeposit 2 days later = $600



Submitted by Alan - IRA critic on Fri, 2023-09-29 17:33

  • The plan should be OK as long as you had a rollover available under the one rollover limitation. While you cannot rollover a 72t distribution, an amount in excess of your annual 72t calculation is not a 72t distribution. With the rollover you will be reporting the correct 72t annual calculation on line 4 of Form 1040.
  • Of course you must now be extra careful because you locked out of another such rollover for the next 12 months.

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