Q. I was downsized when I was 46 and rolled over everything into a 72(t). I am currently withdrawing from it monthly as I cannot find a job that pays enough to live off of. I am in a situation now where I need some extra money to clear off some debt and buy a new car. Can I take a one-time withdrawal from my 72(t), in addition to my monthly? If so, what are the tax implications?

A. You may not change the annual withdrawal scheme as calculated and required under 72(t). If you do, the 72(t) exception to the early withdrawal penalty will be voided and you’ll be obligated to pay the early withdrawal penalty on all withdrawals taken under the exception, to date.


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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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