72t Distributions
If I take 72t distributions over 4 years from one IRA, and then find I need to distribute more in a lump sum from a different IRA for my business, will IRS impose excise penalty on the 72t distributions from the earlier IRA as well?
Permalink Submitted by Alan - IRA critic on Mon, 2020-03-16 16:04
You will bust the plan only if the other IRA was used as part of the account balance to calculate your 72t annual distribution. If the other IRA was never part of your plan, then distributions from it will not affect your plan, but of course they will be subject to the penalty. For people with enough total IRA assets, it is recommended to maintain one IRA outside the 72t plan for emergency needs such as this.
Permalink Submitted by Brendan Walsh on Mon, 2020-03-16 16:14
Thank you Alan!