72t
I have a client that turns 59 1/2 on 7/13/2014…client started 72t on 4/25/2006 – distributions will run until he turns 59 1/2. Due to the fact that our client’s distributions fall on the 25th of each month…will the last distribution be 6/25/2014 or would he be required to take a distribution in July because that’s when he turns 59 1/2?
Permalink Submitted by Alan Spross on Fri, 2009-05-29 21:02
His last distribution would be in June, 2014. However, in the final stub year after already taking out at least 5 years of payments, no distribution at all is required. But if he takes monthly distributions, there must be 6 of them.
I would suggest changing the monthly distributions to the 10th of the month. Having the final distribution that close to year end does not leave any time to make corrective adjustments in the event some problem surfaces with the final distribution.