72(t) Substantially Equal IRA distributions missed

[Guest Noidy]

If a person took five years of 72(t) distributions and then stopped taking them but also didn't reach age 59.5 (she's now age 58), any idea on how to correct this?

I beleive the IRS policy is to subject ALL pre-59.5 distributions to the penalty.

Does anyone know if the IRS have a system in place to check to make sure 72(t) distributions were all processed for the greater of five years or reaching 59.5? Probably the IRS system will catch up to this in 2 or 3 years? Do you know how kind the IRS is regarding fixing missed distributions?

[jevd]

72(t) website

Check out the above site. Lots of good info on 72(t)

No offense to experts on this page.

[Guest ERISA_kid]

See Private Letter Ruling 200503036

[Appleby]

Kid---It seems 200503036 allowed the taxpayer to make a ‘catch-up’ distribution in the following year, because the failure to distribute the amount by year-end was attributed to the financial institution. I am not sure that it would be helpful in this situation

[Kirk Maldonado]

jevd:

Thanks for posting the URL for that website. It does have a lot of useful information.

[Appleby]

An man who runs it - Gordon Weis is one of the nicest person and humblest ever.