Will This Disrupt My Pre 59 1/2, 72t (SES) Distributions?

[Guest irr7342]

If I'm taking 72t distributions (pre 59 1/2, Substantially Equal Series), can I take out $2,500 and still use the 60 day rule on a onetime distribution if I redeposit it and not "interupt" my normal SES distribution? Thanks

[BPickerCPA]

Probably yes, but if you miss the 60 days, you've screwed up the entire payout series. Is it worth the risk?

[Belgarath]

I'm no expert on this, but I would almost swear I remember that the Arnold case came to the conclusion that an additional withdrawal triggers the penalty. And although I can see your argument that it doesn't really constitute a "withdrawal" if it is rolled back in and is not subject to taxation, would you feel comfortable that this is a strong enough argument to prevail if the IRS challenges it? I'm just curious because I received a similar question last month. Thanks.

[BPickerCPA]

Arnold did not involve a 60 day rollover question. I think there is no problem because if it's rolled over, it's not considered a taxable distribution. However I have to speak to the IRS in DC tomorrow, and I will try to remember to raise this question.