Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
72T question
Old 05-11-2008, 09:07 PM   #1
Recycles dryer sheets
 
Join Date: Nov 2007
Posts: 95
72T question

"IF" I begin a 72T distribution at age 56, and then start another job at age 57, what are the tax implications?
Can I be taking 72T distributions, and still contribute to a (different) IRA and/or 401k ?

I'm not sure on the second career job, but it could happen.

Thanks for your input.

b
__________________

__________________
bentley is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-11-2008, 09:22 PM   #2
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
I think you can do it. It would be vital that you establish a different qualified retirement account that is not included in the original SEPP. Check out this website for good info and then back it by reading referenced IRS docs Welcome to 72t on the Net

Edit - I have zero knowledge of 401(k)s, but I think you can make penalty free withdrawals if you leave your employer after you turn 55. Somebody will come along and correct me if I am wrong, but if that is the case I don't guess you would want to burden yourself with the potential complications of dealing with a SEPP. But you mentioned both IRAs and 401(k), are you planning on doing your SEPP from both?
__________________

__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Old 05-11-2008, 10:30 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Feb 2006
Posts: 1,183
Quote:
Originally Posted by bentley View Post
"IF" I begin a 72T distribution at age 56, and then start another job at age 57, what are the tax implications?
Can I be taking 72T distributions, and still contribute to a (different) IRA and/or 401k ?

I'm not sure on the second career job, but it could happen.

Thanks for your input.

b
Yes, you certainly can. The only item is you may be in a higher tax bracket with the 72T and wages. You can max a new 401k and create a new IRA or Roth as well.
__________________
crazy connie is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
72t clay5769 Hi, I am... 6 01-25-2008 09:50 AM
401k to 72T withdraw question jeeper FIRE and Money 8 10-25-2007 12:51 PM
Should I 72T or not testtubes FIRE and Money 6 04-04-2007 12:04 PM
72T question about additional income testtubes FIRE and Money 3 01-31-2007 05:41 PM
72T becca FIRE and Money 17 06-17-2003 07:11 PM

 

 
All times are GMT -6. The time now is 10:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.