Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Roth conversion counts as part of 72t distribution???
Old 12-28-2020, 03:07 PM   #1
Recycles dryer sheets
 
Join Date: Dec 2007
Posts: 240
Roth conversion counts as part of 72t distribution???

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.
ut2sua is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-28-2020, 03:17 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 5,342
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.
__________________
"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.
SecondCor521 is offline   Reply With Quote
Old 12-28-2020, 11:55 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 11,324
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).
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 12-29-2020, 03:56 PM   #4
Recycles dryer sheets
 
Join Date: Dec 2007
Posts: 240
Thanks both SC521 and Sunset. I need to forget that idea of mine
ut2sua is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
56 next week. 72T or Roth conversion? almost there FIRE and Money 11 09-06-2017 06:59 AM
What counts as income for Roth? tuixiu FIRE and Money 2 08-30-2014 11:03 AM
Maxing out pretax and taking 72t vs. taxable and no 72t whipsaw Young Dreamers 3 07-29-2014 07:26 AM
To 72t or not to 72t, that is the question. nun FIRE and Money 12 05-18-2011 04:50 PM
A question about 72(t) and Roth conversion & distribution swampwiz FIRE and Money 0 04-17-2010 03:29 AM

» Quick Links

 
All times are GMT -6. The time now is 09:56 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.