Guest carolinawind Posted July 25, 2005 Posted July 25, 2005 A person, age 72 makes a large withdrawal from his IRA. Can the taxes due on the withdrawal be stretched over a period of 10 years?
Belgarath Posted July 25, 2005 Posted July 25, 2005 No. The 10 year averaging applies to certain lump sum distributions from qualified plans, but not to IRA's.
BPickerCPA Posted July 26, 2005 Posted July 26, 2005 Even for a distribution that qualifies for ten year averaging, that does not give you ten years to pay the tax. Ten year averaging (simplified version) is a computation that basically computes the tax on one-tenth, and multiplies it by ten. But the tax is still due all in one year. Barry Picker, CPA/PFS, CFP New York, NY www.BPickerCPA.com
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