I will be turning 59 ½ in July of 2024 and want to stop withdrawing funds from my IRA at that time as I have a part time job which I can live off of. If my withdrawals are going to be $2000.00 a month when calculating the 72T is that what I have to take for 6 months or half of that. Thank you.
OK, you have 3 options for 2024 before reaching 59.5. Take no distributions, take the first 6 months of distributions or take out a full annual amount. The plan will end on the day you reach 59.5, after which you will have no restrictions and all distributions will be penalty free. If you do not take any distributions in 2024 before reaching 59.5, you will not have to file a 5329 to claim the penalty exception.
Permalink Submitted by Alan - IRA critic on Wed, 2023-10-04 14:41
On what date was your first 72t plan distribution and did you take out 12 months worth that year? The distributions must continue for the longer of 5 years (60 months worth) or reaching 59.5. Depending on when your first distribution was, you may have options for the last distribution year.