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-   -   72T question (https://www.early-retirement.org/forums/f28/72t-question-35572.html)

bentley 05-11-2008 08:07 PM

72T question
 
"IF" I begin a 72T distribution at age 56, and then start another job at age 57, what are the tax implications?
Can I be taking 72T distributions, and still contribute to a (different) IRA and/or 401k ?

I'm not sure on the second career job, but it could happen.

Thanks for your input.

b

Leonidas 05-11-2008 08:22 PM

I think you can do it. It would be vital that you establish a different qualified retirement account that is not included in the original SEPP. Check out this website for good info and then back it by reading referenced IRS docs Welcome to 72t on the Net

Edit - I have zero knowledge of 401(k)s, but I think you can make penalty free withdrawals if you leave your employer after you turn 55. Somebody will come along and correct me if I am wrong, but if that is the case I don't guess you would want to burden yourself with the potential complications of dealing with a SEPP. But you mentioned both IRAs and 401(k), are you planning on doing your SEPP from both?

crazy connie 05-11-2008 09:30 PM

Quote:

Originally Posted by bentley (Post 655836)
"IF" I begin a 72T distribution at age 56, and then start another job at age 57, what are the tax implications?
Can I be taking 72T distributions, and still contribute to a (different) IRA and/or 401k ?

I'm not sure on the second career job, but it could happen.

Thanks for your input.

b

Yes, you certainly can. The only item is you may be in a higher tax bracket with the 72T and wages. You can max a new 401k and create a new IRA or Roth as well.


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