Avoiding 10% 59-1/2 penalty tax

[drakecohen]

Facts:

1) Participant born 7/2/1950

2) Terminated employment in 2007 and rolled over $100,000 into an IRA

3) In 2009 cashed in the IRA.

Question:

Would the age 55 exception from the 10% penalty tax to qualified plan distributions maintain after it's been rolled over to an IRA?

[ETA Consulting LLC]

Facts:

1) Participant born 7/2/1950

2) Terminated employment in 2007 and rolled over $100,000 into an IRA

3) In 2009 cashed in the IRA.

Question:

Would the age 55 exception from the 10% penalty tax to qualified plan distributions maintain after it's been rolled over to an IRA?

No. He would, then, have to turn age 59 1/2 (or meet some other exception to the penalty).

Good Luck!