72T Calculations Early Distribution without penalty

Feb 13, 2010 2 Replies
R

I have run through 72T calculations to take early distribution on my IRA (I am 55 plus).


1) Is this something I need to have a tax adviser look at or do I simply ask my broker to start sending monthly checks?


2) Are there IRS forms to fill out?


3) Since I am about 8 months into age 55, do I need to or can I take, a catch up payment for the previous 8 months? If I do, I assume that this amount will be taxable in 2010 not 2009? Correct?
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J

1 - if you are comfortable you understand the method and calculate the withdrawal correctly, you can do it on your own. 2 - if I recall, form 5329 is required, only to claim exception to the 10% penalty. 3 - you can take the full year's withdrawal if you wish, but you don't have to. if not, and you pro-rate the year, remember to properly prorate the portion of the fifth year that lands in the final calendar year you need to withdraw. After the fifth year, you are back to withdrawing as you wish.

Joe

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