one time reduction of a 72t
i have a client that has been taking a big(8%) 72t distribution since 2002. He is still not 59.5. If we use the rules and do the one time reduction, will that restart the five year waiting period?
i have a client that has been taking a big(8%) 72t distribution since 2002. He is still not 59.5. If we use the rules and do the one time reduction, will that restart the five year waiting period?
Permalink Submitted by Alan Spross on Wed, 2008-05-07 23:01
No. The original modification date will continue to apply, and that is obviously when he turns 59.5.
It is better to avoid doing a mid year switch to the RMD method, so perhaps the RMD calculation for 2008 will not be less than what has already been distributed year to date.