72(t) withdrawal


Q. In the context of a 72(t) withdrawal does “annually” refer to a 12-month period or the calendar year? I took my first distribution in a lump sum in July. Can I take the annual amount in 2015 on a monthly basis starting in January or do I have to wait until July and again take a lump sum? My calculation was done using the “fixed amortization method.”

A. For the purpose of calculating your 72(t) distributions, in means calendar year.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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