72(t) From 401(k)
I currently take 72(t) distributions from my IRA. I’m considering a transfer of this same IRA to my new employer 401(k).
Can I continue to take equal periodic distributions after transfer from my 401(k)?
Thank you.
I currently take 72(t) distributions from my IRA. I’m considering a transfer of this same IRA to my new employer 401(k).
Can I continue to take equal periodic distributions after transfer from my 401(k)?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2014-04-15 22:15
No. You must leave the funds in the IRA. A transfer to another type of retirement plan will bust your 72t plan. Be very careful in making any major changes to your plan, although if you plan currently applies to a single IRA account you could transfer that IRA to another IRA custodian since that is not a change in the type of retirement plan. Also be careful with any rollovers you do. Save your one rollover permitted within a 12 month period as a safety valve in the event you mistakenly take out too much and need to roll the excess amount back into the IRA to save your plan.
Permalink Submitted by Kirk Halveland on Tue, 2014-04-15 22:32
Thank you!