401(k) Retirement Plan: The Smart Way to Secure your Future

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george_gs

Posted: Fri Feb 29, 2008 5:36 am Post subject:

what is 72(t) ?

adonis
adonis

Joined: 22 Oct 2005
Posts: 1237
Location: ALASKA

105.97 Dollars($)

Posted: Sat Mar 01, 2008 2:21 am Post subject:

Welcome george_gs, The IRS has a rule known as 72(t) according to which a person contributing to 401k plan account can withdraw cash prior to the age of 59 and 1/2 years without having to pay the 10% penalty. _________________ Procrastination is the enemy of your financial sucess

larry

Joined: 27 Jun 2007
Posts: 2951

411.26 Dollars($)

Posted: Sat Mar 01, 2008 6:33 pm Post subject:

Hi George, Welcome to the forum. 72(t) distribution is a rule of IRS that eliminates 10% penalty even if you withdraw money early from your 401k, 403(b) plan prior to age 59/12. Hope this helps you. Feel free to ask if you have any further questions. Best of luck, Larry

blue

Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND

134.99 Dollars($)

Posted: Thu Mar 06, 2008 6:50 pm Post subject:

Hi, Welcome to Mortgagefit discussion board. 72(t) distribution from an IRA rollover account is one of the ways through which you can save yourself from the penalties if you wish to take early retirement and also want to get benefits from your 401(k) plan account. Say you want quit your work early. Then you need to roll your 401(k) into IRA. After that you can apply for 72(t) distribution. The rule is after the completion of the rollover and setting up the 72(t) you must continue it until the age of 591/2 or minimum of 5 years whichever comes last. Do let me know if you have any other questions. Thanks Blue

dan34

Guest

0.10 Dollars($)

Posted: Thu Mar 06, 2008 10:28 pm Post subject:

hello larry, is it 72(t) or 73(t)? pls clarify.

larry

Joined: 27 Jun 2007
Posts: 2951

411.26 Dollars($)

Posted: Fri Mar 07, 2008 2:35 pm Post subject:

Hi Dan, I am talking about 72(t) distribution plan not about 73 (t)

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