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Posted by bill on May 10, 2007, 11:35 pm
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Can anyone clarify the IRA exception on early non penalty
pre-59 1/2 withdrawals?
Do all the withdrawals have to be annuitized for the IRA?
tks all
bill
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Posted by Harlan Lunsford on May 11, 2007, 5:49 pm
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bill wrote:
> Can anyone clarify the IRA exception on early non penalty
> pre-59 1/2 withdrawals?
>
> Do all the withdrawals have to be annuitized for the IRA?
>
> tks all
Are you asking if such equal payments have to be on a
monthly basis as opposed to an annual basis?
ChEAr$,
Harlan Lunsford, EA n LA
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by joetaxpayer on May 11, 2007, 5:49 pm
Please log in for more thread options bill wrote:
> Can anyone clarify the IRA exception on early non penalty
> pre-59 1/2 withdrawals?
>
> Do all the withdrawals have to be annuitized for the IRA?
Are you asking for the other exceptions?
Disability of owner
Death of owner (not the way to go)
Pay back non reimbursed medical costs which exceed 7.5% AGI.
First time home purchase ($10K)
College cost
To get a regular annual withdrawal, you need to use the
annuitization method, discussed in much detail at
http://www.retireearlyhomepage.com/wdraw59.html
(this is also referred to as Sec72t for what that's worth)
You can break the IRA into separate accounts for this method,
i.e. you do not have to annuitize your entire IRA balance.
JOE
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by bono9763@yahoo.com on May 11, 2007, 5:49 pm
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> Can anyone clarify the IRA exception on early non penalty
> pre-59 1/2 withdrawals?
>
> Do all the withdrawals have to be annuitized for the IRA?
The exceptions to the penalty for early withdrawal are
listed on Form 5329 and its instructions. The one you seem
to be referencing is taking substantially equal payments. In
order to qualify, these withdrawals must last at least five
years or until you reach age 59-1/2, whichever takes longer.
So if you are 54-1/2 or younger when you start, you have to
continue until age 59-1/2. If you are 57 when you start, for
example, you have to continue until age 62.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by A.G. Kalman on May 11, 2007, 5:49 pm
Please log in for more thread options bill wrote:
> Can anyone clarify the IRA exception on early non penalty
> pre-59 1/2 withdrawals?
>
> Do all the withdrawals have to be annuitized for the IRA?
http://www.irs.gov/publications/p590/ch01.html#d0e8223
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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