72(t) | Ed Slott and Company, LLC

72(t)

SIMPLE IRAs and 72(t) Payments: Today's Slott Report Mailbag

Question: I am a financial advisor and want to be clear on something. If a client has a SIMPLE IRA that they are contributing to and have an IRA and are 70.5, can they aggregate the distributions for both and remove from the IRA? Wanda Answer: Aggregation of RMDs is a tricky area and we see lots of mistakes. SIMPLE IRAs can be confusing as well because sometimes these accounts follow the IRA rules, and sometimes they follow plan rules.

SEPP, SPIA, Rollovers, and 72(t): Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about the tax consequences of substantially equal period payments and rolling a 401(k) into a single premium immediate annuity IRA.

Problems with the Once-Per-Year Rollover Rule? This Week’s Q&A

This week's Slott Report Mailbag looks into 72(t) payments, CD-IRAs, and the once-per-year rollover rule.

10 Rules to Know About 72(t)

Are you under age 59 ½ and looking to access your IRA funds without being hit with the 10% early distribution penalty? Taking substantially equal periodic payments, or “72(t)” payments as they are sometimes called, from your IRA may be an option for you. With 72(t) payments, you can take early distributions from your IRA and avoid a penalty. Sound too good to be true? Well, these payments are subject to many strict rules. You should understand the restrictions before you jump in. Here are 10 rules you should know about 72(t) payments before you decide that they are the answer for you.

Does a Five-Year Holding Period Apply to Each Roth Conversion?

This week's Slott Report Mailbag, coming to you live from our 2-Day IRA Workshop in Philadelphia, contains questions from consumers screaming (sometimes literally) for help! In several cases, the issues involve the magic age of 59 1/2 and cover a variety of topics, including life insurance issues, 72(t) payments with a divorce and the Roth IRA 5-year rules.

What Happens If I Break the 72(t) Payment Plan?

This week's Slott Report Mailbag, proudly sponsored by GoldCo Precious Metals, examines the 72(t) process and answers a question on the IRA distribution rules between the ages of 59 ½ and 70 ½.

Do I Have a Required Distribution From my IRA This Year?

We are down to the last two months of the year. It is time for those who have required minimum distributions (RMDs) from a retirement plan to make sure that those distributions are taken. Following is a list of those who have required distributions for the year.

Moving an IRA That is Making 72(t) Distributions

You are under age 59 ½ and need funds from your IRA to live on. You set up an early distribution payment plan that will be exempt from the 10% early distribution penalty (called 72(t), SOSEPP, or SEPP payments). You now want to move that account from your current IRA custodian to a new one. Can you do that? Click to find out.

Disability Tax Code Benefits For Retirement Accounts

Whether it be from injury, illness or otherwise, being disabled can be physically trying and mentally challenging. It can also be tough on your wallet, as being disabled often carries with it additional medical costs, not to mention a possible loss of earning power. Certainly no one in their right mind would ever choose to be disabled, but if life has dealt you this hand, there are a few benefits available under the tax code to help you make the most of your retirement accounts. Below are three such benefits, discussed in greater detail.

Should You Begin 72(t) (SEPPs, SOSEPPS) Distributions in the Fiscal or Calendar Year?

A client is setting up a 72(t) distribution schedule – substantially equal periodic payments that will be exempt from the 10% early distribution penalty. Her first distribution won't be made until September and she would like to take monthly payments. But she also wants the full distribution for the first year, not just four payments. Can she do this? We answer this question below.

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to matt@irahelp.com for approval.

For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at matt@irahelp.com or (516) 536-8282 with any questions.

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.