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Checking on 59.5 Exact Timing
05-31-2023, 09:31 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,167
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Checking on 59.5 Exact Timing
Just checking, as I turn 59.5 soon, and can access my pretax retirement funds.
Here is the question: is the 59.5 date exactly six months after my birthday? For example, if birthday is Dec 10 (not my real date) then I could do withdrawal any day after Jun 11? Or does something else apply like the next month July after the six months has passed?
I realize I could wait a bit longer, just trying to learn and understand the exact timing rules. Thanks for the help.
__________________
I used to have a handle on life, but it broke.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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05-31-2023, 09:37 AM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 6,927
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Yes. It is 6 calendar months after you turn 59.
It is not based on days.
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05-31-2023, 03:10 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,167
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 Quote:
Originally Posted by Montecfo
Yes. It is 6 calendar months after you turn 59.
It is not based on days.
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So any date in June would meet the test? Even June 1 since I turned 59 in December on the 10th in my example?Or would I have to wait until any date in July? I'm still confused.
__________________
I used to have a handle on life, but it broke.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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05-31-2023, 03:20 PM
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#4
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Recycles dryer sheets
Join Date: Nov 2015
Location: Upper Cape
Posts: 322
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Ed Slott says: "Age 59.5 is defined as exactly 6 months following the 59th birthday. It is not necessary to count the days in each month."
So it sounds like June 11th for you is correct, if you were born on Dec 10th.
https://www.irahelp.com/forum-post/1...9th%20birthday.
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05-31-2023, 03:42 PM
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#5
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Recycles dryer sheets
Join Date: Aug 2012
Posts: 63
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I recall reading it is the day AFTER you turn 59.5, but again using the numbered day of the month, not counting 183 days to establish the half year.
So, yes, if born Dec 10th, you'd want to do it June 11th or later, but definitely not on June 10th.
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05-31-2023, 05:13 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Aug 2016
Location: Northern Virginia
Posts: 6,927
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Quote:
Originally Posted by 38Chevy454
So any date in June would meet the test? Even June 1 since I turned 59 in December on the 10th in my example?Or would I have to wait until any date in July? I'm still confused.
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No. June 11.
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05-31-2023, 05:16 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 7,879
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__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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05-31-2023, 07:53 PM
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#8
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Jun 2006
Location: Boise
Posts: 7,505
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AFAIK, the statute only says 59 1/2 without any definition of the 1/2 year.
Personally, for that rule, as well as the 70 1/2 rule for QCDs, I would just wait until either 59 (70) years and 184 days, or my 59th (70th) birthday plus six months plus one day. I would also probably arrange my life to where I don't cut it that close and would wait a few days past that.
While I'd still follow the rule, I doubt the IRS would dig into something like that unless there was a specific reason for them to do so (like a tip from someone that you broke the rule).
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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05-31-2023, 08:54 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,419
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I'm wondering if the house that holds your tax-deferred investments automatically calculates this [they know your birth date], as they have to withhold the 10% penalty if you're <59.5 and didn't follow the Rule of 55.
__________________
Balance in everything.
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05-31-2023, 09:34 PM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,505
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Quote:
Originally Posted by HI Bill
I'm wondering if the house that holds your tax-deferred investments automatically calculates this [they know your birth date], as they have to withhold the 10% penalty if you're <59.5 and didn't follow the Rule of 55.
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No, they don't. You have to pay it on your tax return via Form 5329, but your custodian doesn't have to withhold the penalty. At least as far as I know.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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06-01-2023, 12:44 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,167
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Thanks for the replies. If I do any withdrawal I will just wait until at least 6 months and one day (June 11 in my example) to avoid any potential problems. My IRA is at Fidelity, and so they definitely know my birthday.
__________________
I used to have a handle on life, but it broke.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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06-01-2023, 07:54 PM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 16,017
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I guess if I had any doubts I would:
1. Wait a few days or even a month
2. Call my CPA (who does my taxes) and ask him/her
3. If all else fails - call the IRS help line (though they don't stand behind their "advice."
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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