72(t) | Ed Slott and Company, LLC

72(t)

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

Question: My situation is as follows: I am 56 years old and have an IRA which I have been taking SEPP/72(t) payments since 2008.

3 Reasons Why You May Want to Think Twice About a 72(t) Payment Plan

Times are tough. Unemployment is high and bills are piling up for many. These realities have forced a lot of people to look for sources of extra cash. For many Americans, their IRA is their biggest, or maybe only, savings available. It may be tempting to consider tapping into it in these challenging times. Distributions taken before age 59 ½ are subject to a 10% early distribution penalty.

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.

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