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72t - whats the percent that can be taken out?
Old 01-03-2008, 05:59 AM   #1
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72t - whats the percent that can be taken out?

I understand with 72t one would need to either take the same amount of money out every year for 5 yrs or until one reaches 59.5 (whatever is longest). Just read that there is a % from last years retirement fund that can be taken.

What is that %?

and id still be able to dip in if I find its not enough, right
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Old 01-03-2008, 08:57 AM   #2
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The % is determined from 120% of the federal mid term rate ( no more than ).
See link Fidelity Investments: Site Search from Fidelity that includes the current rate. I think you can also look back to the previous rate if that is to your advantage.

As far as dipping in - you can divy up your ira into smaller ira's but you don't want to mess with the IRA at all that the 72t is taken from - this can be a very taxing event. If you split your IRA into several you can start a 72t on one of the untouched funds if needed.
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Old 01-03-2008, 08:58 AM   #3
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You need to get and read IRS Publication 590. 72T rules are very strict.
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

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Old 01-04-2008, 08:06 PM   #4
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Go to 72t On the net they explain the process very well and have calculators and sample documentation sheets.
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Old 01-04-2008, 08:20 PM   #5
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