Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Digging in to details on setting up a 72(t) plan, I have stumbled across some things that make me wonder what is the goal or purpose behind setting up a penalty for early withdrawal of retirement funds in the first place.
One of the cases I read about was a lady who set up a 72(t) correctly and had her annual payment direct deposited by a custodian to her account. Everything went peachy for a number of years but then her custodian retired and did not direct the person at the company taking over his job to continue her direct deposit, so it missed by a couple of weeks and rolled over into the new year. She had to PAY the IRS $10,000 to issue an opinion that she could make up this money in the new year with the extra payment and not bust the plan.
I had no idea you had to pay the IRS for an opinion (up to $55,000!).
I'm kind of really scared right now of doing anything other than a annual lump sum 72(t) no later than October, so I have two full months to correct any error by Fidelity. I am also wondering what is the goal of punishing someone in their retirement by nearly destroying their retirement via penalties and interest for a totally honest mistake.
One of the cases I read about was a lady who set up a 72(t) correctly and had her annual payment direct deposited by a custodian to her account. Everything went peachy for a number of years but then her custodian retired and did not direct the person at the company taking over his job to continue her direct deposit, so it missed by a couple of weeks and rolled over into the new year. She had to PAY the IRS $10,000 to issue an opinion that she could make up this money in the new year with the extra payment and not bust the plan.
I had no idea you had to pay the IRS for an opinion (up to $55,000!).
I'm kind of really scared right now of doing anything other than a annual lump sum 72(t) no later than October, so I have two full months to correct any error by Fidelity. I am also wondering what is the goal of punishing someone in their retirement by nearly destroying their retirement via penalties and interest for a totally honest mistake.