PainPA Posted January 17, 2014 Posted January 17, 2014 Is the distribution code used when dealing with 59 1/2 the age when the distribution occurred or is it 59 1/2 during the tax year?
ETA Consulting LLC Posted January 17, 2014 Posted January 17, 2014 No. The distribution must be 6 months after 59th birthday or later. This is different from the age 55 and severed employment exception; where you are exempted if you terminate employment in the year you turn age 55 (or later). Good Luck! CPC, QPA, QKA, TGPC, ERPA
ETA Consulting LLC Posted January 17, 2014 Posted January 17, 2014 Notice, if the person who receive the distribution actually terminated employment prior to the distribution, then they are still exempt under the age 55 exception; assuming you're talking about the 401(k) plan of an employer (and not an IRA). Good Luck! PainPA 1 CPC, QPA, QKA, TGPC, ERPA
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