You’re a smart bunch of people. I’ve known that ever since I first met you. You’re also energetic and resourceful – not accustomed to just sitting still and letting the world have its way with you. I realize that there is some frustration on your part (probably a lot of frustration) about this current economic [...]
Posts from ‘November, 2008’
SOSEPP – Fixed Annuitization method
When calculating your Series of Substantially Equal Periodic Payments (SOSEPP), provided for under §72(t)(2)(A)(iv) of the Internal Revenue Code, one of your choices is the Fixed Annuitization method. Calculating your annual payment under this method requires you to have the balance of your IRA account and an annuity factor, which is found in Appendix B [...]
SOSEPP – Fixed Amortization Method
When calculating your Series of Substantially Equal Periodic Payments (SOSEPP), provided for under §72(t)(2)(A)(iv) of the Internal Revenue Code, one of your choices is the Fixed Amorization method. Calculating your annual payment under this method requires you to have the balance of your IRA account, from which you then create an amortization schedule over a [...]
SOSEPP – RMD Method
The Required Minimum Distribution method for calculating your Series of Substantially Equal Periodic Payments (under §72(t)(2)(A)(iv)) calculates the specific amount that you must withdraw from your IRA (or other retirement plan) each year, based upon your account balance at the end of the previous year, divided by the life expectency factor from either the Single [...]
Changing Your SOSEPP – Once, just once
The IRS allows you to change your Series of Substantially Equal Periodic Payments (SOSEPP) allowed under §72(t)(2)(A)(iv) – one time, and only one time. And then, you’re only allowed to change your method from either the fixed annuitization method or the fixed amortization method to the Required Minimum Distribution method. This is the only exception [...]
Early Withdrawal of an IRA – Series of Substantially Equal Periodic Payments
This particular section of the Internal Revenue Code – specifically §72(t)(2)(A)(iv) – is the most famous of the 72(t) provisions. This is mostly due to the fact that it seems to be the ultimate answer to the age-old question “How can I take money out of my IRA without penalty?” While it’s true [...]
Withdrawals from an IRA – death, disability, and 59 1/2
Three of the most common ways that you can withdraw funds from your IRA without penalty are – reaching age 59 1/2, death, and disability. When you reach age 59 1/2, you can withdraw any amount of your IRA (or other deferred account) without penalty, for any reason. The only thing you have to remember [...]
Early Withdrawal of an IRA – 72(t) Exceptions
In our first post about early withdrawal from an IRA, we mentioned that there were several exceptions in the Internal Revenue Code that allow an early withdrawal from your IRA or 401(k) without the 10% penalty being imposed. The section of the IRC that deals with quite a few of these exceptions is called Section [...]
Early Withdrawal of an IRA – Medical
As we covered in a previous post, there are several ways to get at your IRA funds before age 59 1/2 without having to pay the 10% penalty. In this second post in our series about Early Withdrawals, we’ll cover the Medical purposes which allow this penalty-free distribution. There are three different Medical reasons that [...]
Early Withdrawal of an IRA – First Time Homebuyer
Normally, when you’ve put money into an IRA (or 401(k), or other deferred compensation arrangement), you are allowed to begin taking withdrawals once you’ve reached age 59 1/2. But sometimes you’d like to take your money out earlier… and you’ve probably already discovered that there is a 10% penalty for taking funds out of your [...]
And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".
