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- Oct 28, 2003
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I'm playing with the idea of setting up an IRA 72(t) distribution - no 10% early withdrawal penality because I think taxes will increase in the future and I'm in the lowest income tax level now. I only paid $200 in state taxes last year.
My understanding is that the company that does the IRA distribution must issue a 1099R form.
If you have done this:
1. How do you set it up with the company so they know it is a 72(T) distribution and not subject to the 10% penalty. I think they also have to check off a box about it.
2. How did you report the income and note that it is not subject to the 10% penalty on your tax return? I looked on the 1040 form but it was not clear to me.
3. Is there an IRS form to do the calculations to determine the amount to return?
I found on line calculators but not an IRS form
I know about IRS publication 970
72t Calculator | 401k Planning
Thanks
My understanding is that the company that does the IRA distribution must issue a 1099R form.
If you have done this:
1. How do you set it up with the company so they know it is a 72(T) distribution and not subject to the 10% penalty. I think they also have to check off a box about it.
2. How did you report the income and note that it is not subject to the 10% penalty on your tax return? I looked on the 1040 form but it was not clear to me.
3. Is there an IRS form to do the calculations to determine the amount to return?
I found on line calculators but not an IRS form
I know about IRS publication 970
72t Calculator | 401k Planning
Thanks