pre 59 1/2 annuitization within an IRA
Want to be sure.
New client has annuity within an IRA; wants to retire. Client is 55. Annuity can only be annuitized over 10 years to receive full value.
Will this annuitization count under the 72T penalty exceptions?
Permalink Submitted by Alan - IRA critic on Mon, 2015-07-20 21:32
No. A distribution must be calculated under one of the 3 methods outlined in RR 2002-62 for substantially equal periodic payments to qualify for the penalty waiver. A 10 year annuity would produce a payment far in excess of any of those methods.
Permalink Submitted by Brian Devers on Tue, 2015-07-21 20:49
Thanks much.