distribution just before 59.5
A person took a distribution on January 3, 2008. They were given bad advice. Someone told them that they could take a distribution in the year they turned 59.5. Well their 59.5 birthday was February 3, 2008. The 60 day roll over opportunity is gone. Is there anything else this client can do to avoid the 10% penalty? They can not do 72t because they took out 1/2 of their IRA.
Permalink Submitted by Alan Spross on Fri, 2008-03-07 03:53
Any chance he needed that much money for reasons that also constitute an exception? Hard to request one of the fairly lax rollover exceptions if he does not intend to roll it over. The IRS is not sympathetic to rollover exceptions when the reason for the distribution was for short term loan purposes.