72(t) Question
Client (age 58) began a 72t distribution with her first withdrawal having occurred in July 2018. She would like to change the 2019 date to March as the money is needed prior to July. The calculation method will remain the same, only the date of the withdrawal is being changed. Is this allowed? If so…must the March date remain the same for the remaining annual distributions or can it be changed annually? Does this mean the 72t is being re-established in any way or is it the same 72t request? Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2019-02-25 18:22
Yes, this is allowed. The only thing that matters is that the correct annual distribution amount shows on Form 1099R. Client can totally change the distribution pattern every year. The plan is the same 5 year plan started last year. Client probably took a full annual distribution in 2018, and the same should occur 2019-2022. The plan does not end until July, 2023.