What Happens if I Don’t Maintain My 72(t) Distribution Correctly?
There are several ways you can “bust” a 72(t) SEPP distribution and the consequences can have a severe financial impact if the account is not managed properly. If you take …
A True 72(t) Planning Pioneer
Jerry “Doc” Hall, the 72(t) planning pioneer Jerry “Doc” Hall, PhD, was a visionary, and we want to honor this man who passed away in March 2014 at the young …
What is an IRA Rollover?
An IRA rollover explained Generally, after a person retires, quits, or is let go, they are given the option to “rollover” their retirement plan(s) into a new company’s plan, if …
Q & A: 72(t) and IRA Accounts
Q: Does 72(t) apply to a Roth IRA or any non-IRA accounts? A: 72(t) distributions are not applicable to a Roth IRA, as the dollars that were originally contributed to the Roth IRA have already been …
Do I Have to “Rollover” My Money to an IRA Retirement Plan to Access My Money Through a 72(t) Distribution?
The answer is “No,” but in many cases, we recommend that you do. An employer-sponsored 401(k) or pension often carries restrictions on withdrawals and limited investment options as well as …
Early Withdrawal Exceptions Explained
I recently wrote about the 72(t) rules and we are often asked, “Are there exceptions to IRS rule 72(t) for early retirement income?” Most retirement plan distributions are subject to …
Q & A: Accessing Your 401(k) Retirement Plan Funds Using 72(t)
Q: How do I get my 401(k) retirement plan funds without penalty? A: If you take a distribution from your retirement plan early, meaning “before the day you turn 59½, or age 55 …
72(t) Exceptions Explained
The 72(t) distribution will NOT be subject to the 10% additional early distribution tax in the following circumstances: Age: after participant/IRA owner reaches age 59½ Automatic Enrollment: permissive withdrawals from a plan …
Q & A: Do I Pay Any Taxes on a 72(t) Early Distribution?
A: The answer is “Yes.” Remember, retirement accounts are 100% tax deferred until you start taking withdrawals. Whether you are at, above, or under age 59½, 100% of the dollars …
Q & A: Can I Transfer an Existing 72(t) Distribution and Continue the Distributions With a New Firm?
A: As you will see with many IRS rules and guidelines, there are various shades of gray or valid questions that are not specifically addressed. What you must rely on …