Sentences with phrase «substantially equal distributions»

Not exact matches

This allows you to make what the IRS calls 72 (t) distributions — also known as a Series of Substantially Equal Periodic Payments — without paying the 10 - percent tax for early withdrawal.

If you're under 59 1/2 you'll pay a 10 % penalty unless you take 72 (t) distributions in substantially equal periodic payments.

footnote ** IRA distributions received before you're age 59 1/2 may not be subject to the 10 % federal penalty tax if the distribution is due to your disability or death; is distributed by a reservist who was ordered or called to active duty after September 11, 2001, for more than 179 days; or is for a first - time home purchase (lifetime maximum: $ 10,000), postsecondary education expenses, substantially equal periodic payments taken under IRS guidelines, certain unreimbursed medical expenses, an IRS levy on the IRA, or health insurance premiums (after you've received at least 12 consecutive weeks of unemployment compensation).

The 72t distribution rules for substantially equal periodic payments is best used if you're thinking about early retirement.

Substantially equal periodic distributions that start after you separate from service over your life or life expectancy (or the lives or joint life expectancy of you and your beneficiary);

The exception for substantially equal periodic distributions over a specified period applies without regard to whether you have separated from service.

Otherwise, these withdrawals of earnings are subject to ordinary income tax and the 10 % federal income tax penalty (with certain exceptions including death, disability, unreimbursed medical expenses in excess of 10 % of adjusted gross income, higher - education expenses the purchase of a first home ($ 10,000 lifetime cap) substantially equal periodic payments, and qualified reservist distributions).

The Required Minimum Distribution method for calculating your Series of Substantially Equal Periodic Payments (under § 72 (t)(2)(A)(iv)-RRB- calculates the specific amount that you must withdraw from your IRA, 401k, or other retirement plan each year, based upon your account balance at the end of the previous year.

Using substantially equal monthly payments based on the IRS life expectancy table, the individual received $ 1,194.74 a month at age 57; $ 1,985.93 a month at age 69; $ 1,280.21 per month at age 70, when the payments shift to required minimum distributions; and ended up with $ 2,692.04 a month at age 90.

You receive distributions that are part of a series of substantially equal payments over your life (or life expectancy).

Substantially equal periodic payments (at least annually) made for life or life expectancy Or, for a specified period of 10 years or more required minimum distributions

If you're under 59 1/2 you'll pay a 10 % penalty unless you take 72 (t) distributions in substantially equal periodic payments.

2) For IRAs, you can use a Code Section 72 (t)(2) distribution for substantially equal periodic payments to get a distribution penalty free.

As Part of a SEPP Program For penalty - free distributions that are part of a series of substantially equal periodic payments (SEPP) over the life of the IRA holder and or his or her beneficiary, the payments must last five years or until the IRA owner reaches age 59 1/2 — whichever is longer — and the calculation of the payment amounts must be done under certain IRS - approved methods.

Distributions made as part of a series of substantially equal periodic payments, at least annually, and for your life or for the joint lives of you and your designated beneficiary

Getting Back on Track with Busted SEPPs One of the exceptions to the 10 % early - distribution excise tax is taking distributions as part of a substantially equal periodic payment (SEPP).

If an individual begins receiving substantially equal periodic payments using a fixed method on or after January 1, 2003, may that individual change to the required minimum distribution method?

Mr. B would like to avoid the additional 10 % tax imposed on early distributions under section 72 (t)(1) by taking advantage of the exception in section 72 (t)(2)(A)(iv) for distributions in the form of substantially equal periodic payments.

How are annual, substantially equal periodic payments determined for purposes of the required minimum distribution method, the fixed amortization method and the fixed annuity method?

Substantially equal payments: If your IRA distribution is part of a series of substantially equal periodic (not less frequently than annually) payments made for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary, the withdrawal is generally not subject to the 10 %Substantially equal payments: If your IRA distribution is part of a series of substantially equal periodic (not less frequently than annually) payments made for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary, the withdrawal is generally not subject to the 10 %substantially equal periodic (not less frequently than annually) payments made for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary, the withdrawal is generally not subject to the 10 % tax penalty.

Google / Checkout 72t distributions and Substantially Equal Periodic Payments - also IRS pub 590.