Age 59 1/2 Question
With regards to taking a non-penalized distribution, do you have to be age 59 1/2 on the day you take the distribution, or do you have to be 59 1/2 during that calendar year?
With regards to taking a non-penalized distribution, do you have to be age 59 1/2 on the day you take the distribution, or do you have to be 59 1/2 during that calendar year?
Permalink Submitted by Jose Morales on Thu, 2011-02-10 22:59
you must have reached age 59 1/2 or older on the day of the distribution.
Permalink Submitted by tomd37 on Fri, 2011-02-11 00:09
And that will sting the recipient if they have not attained age 59.5 by the distribution date. 😡 I have seen it on tax returns I have done for others.
Tom D.
Permalink Submitted by Alan Spross on Fri, 2011-02-11 02:49
If the custodian codes the 1099R correctly, it will be a 1 if taken prior to 59.5 and a 7 if taken on or after. Assuming they have the correct DOB of course……….
Permalink Submitted by mk foss on Fri, 2011-02-11 18:30
Often the custodians issue two Forms 1099-R in this situation. One will have a 1 and the other a 7 as Alan pointed out.
My clients who have done this have taken distributions both before and after their half-birthday.