My 401K plan won't allow rule 55 early withdrawals, so I am thinking of setting up a 72t distribution from 1 IRA account as an option to get pretax $ before age 59.5 . My question is if I do a Roth conversion from the 72t account in some years, would that count as a 72 distribution? I think the answer is no, but I am not sure. Thanks in advance for all replies.
Roth conversion counts as part of 72t distribution???
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SecondCor521
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It would break the 72(t) and you'd be liable for penalties.
Also, if you read the rules on Roth conversions, they specifically say that you cannot use 72(t) distribution money as a source for Roth conversions.
Basically if you start a 72(t) on any account, you can't do anything else with that account except the 72(t) distributions until the SEPP is done.
Also, if you read the rules on Roth conversions, they specifically say that you cannot use 72(t) distribution money as a source for Roth conversions.
Basically if you start a 72(t) on any account, you can't do anything else with that account except the 72(t) distributions until the SEPP is done.
Sunset
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OP - no.
If you are considering a 72t , be sure to divide your IRA , so you have one that you can take out extra money and not break the 72t (the penalties are enormous).
If you are considering a 72t , be sure to divide your IRA , so you have one that you can take out extra money and not break the 72t (the penalties are enormous).
