72T Election
If a taxpayer has two IRAs, and he elects to make a 72T election to set up a payment stream, is he restricted from moving assets into or out of that account for the next five years?
Also, can the 72T calculation on payments be done based on two IRA balances or does it have to be done per IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2016-12-20 03:08
Permalink Submitted by Marina Ferrone on Tue, 2016-12-20 16:41
Thank you very much!
Permalink Submitted by Josh Harmon on Sat, 2017-01-07 14:18
I have a client who has been taking his 72(t) payments every year in August. He asked if we could change the amount to monthly, or take it annually at a different time during the year. Is this allowable? Thank you.
Permalink Submitted by Alan - IRA critic on Sat, 2017-01-07 19:59
Yes, the distribution pattern can be changed from year to year. For other than the final year of the plan the only thing that matters is that the total distributions exactly equal the calculated amount. This could be done with one distribution or 24 distributions. In the final calendar year of the plan, there are other options as well.
Permalink Submitted by Josh Harmon on Tue, 2017-01-10 03:16
What are the options for the final year? What makes the final year different?
Permalink Submitted by Alan - IRA critic on Tue, 2017-01-10 03:24