Private Employer Pension Prior to age 59.5
Former employee of private employer can recieve pension as lifetime income and is under 59.5, also under 55. Would the monthly payments be subject to 10% penalty. Thanks,
Former employee of private employer can recieve pension as lifetime income and is under 59.5, also under 55. Would the monthly payments be subject to 10% penalty. Thanks,
Permalink Submitted by Alan - IRA critic on Wed, 2019-06-19 21:32
The penalty would apply until age 59.5, unless the person qualifies for another exception. The “substantially equal periodic payment” exception does not apply because the annual distribution is not being calculated using one of the 3 approved methods in RR 2002-62. Instead, a DB pension is determined by final salary and years of service or variationn thereof. Sec 72t does not have an exception for any immediate annuity.