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#9
02-02-2005, 07:59 PM
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 Re: early distribution Will5144 wrote: - quote - > I am the original poster of this question, but I did not see
You have an early withdrawal as you did not terminate service in> the first replies. (Didn't show up on my server.:-) > I did not retire at 54 and take a distribution. I retired at > 54 and waited till 55 to take a distribution. Still subject > to the penalty? > Sorry if you've already addressed this. As I said I did not > see the original reply(s). the year in which you attained age 55. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#8
02-02-2005, 07:40 PM
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| Re: early distribution HW "Skip" Weldon wrote: - quote - > "A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote:
I don't see anything in IRS guidance relating to how long someone> > The rule requires that you separate from service (you don't > > have to retire) either after attaining age 55 or in the year > > in which you turn age 55. If you pull the plug when you are > > age 54 and take a distribution, it is subject to the add'l > > 10% tax. It doesn't matter if you get re-employed by that > > employer in the following year and separate again. There is > > no impact to the prior year event. > Understood. But what about distributions going forward? By > coming back into workforce for one day after 55, then > retiring again, would he have restarted the clock and thus > qualify for the post-55 penalty free withdrawals going > forward? > -HW "Skip" Weldon > Columbia, SC has to be employed in any given year in order to avail themselves to the age 55 test. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#7
01-31-2005, 11:31 PM
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| Re: early distribution I am the original poster of this question, but I did not see the first replies. (Didn't show up on my server.:-) I did not retire at 54 and take a distribution. I retired at 54 and waited till 55 to take a distribution. Still subject to the penalty? Sorry if you've already addressed this. As I said I did not see the original reply(s). << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#6
01-31-2005, 10:53 PM
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| Re: early distribution "HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote: - quote - > "A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote:
It's not retirement at 55, it's separating from service from> > The rule requires that you separate from service (you don't > > have to retire) either after attaining age 55 or in the year > > in which you turn age 55. If you pull the plug when you are > > age 54 and take a distribution, it is subject to the add'l > > 10% tax. It doesn't matter if you get re-employed by that > > employer in the following year and separate again. There is > > no impact to the prior year event. > Understood. But what about distributions going forward? By > coming back into workforce for one day after 55, then > retiring again, would he have restarted the clock and thus > qualify for the post-55 penalty free withdrawals going > forward? THAT EMPLOYER at 55. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
01-30-2005, 10:22 PM
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| Re: early distribution "A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote: - quote - > The rule requires that you separate from service (you don't
Understood. But what about distributions going forward? By> have to retire) either after attaining age 55 or in the year > in which you turn age 55. If you pull the plug when you are > age 54 and take a distribution, it is subject to the add'l > 10% tax. It doesn't matter if you get re-employed by that > employer in the following year and separate again. There is > no impact to the prior year event. coming back into workforce for one day after 55, then retiring again, would he have restarted the clock and thus qualify for the post-55 penalty free withdrawals going forward? -HW "Skip" Weldon Columbia, SC << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
01-27-2005, 03:19 PM
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| Re: early distribution HW "Skip" Weldon wrote: - quote - > ill5144[at]aol.com (Will5144) wrote:
The rule requires that you separate from service (you don't> > I know one can take money from a 403-b account without > > penalty after age 59 and a half and also at 55 if he retires > > then. What about someone who retires at age 54? Can he then > > take it without penalty at 55, or does he have to wait till > > 59 and a half? > Unless he qualifies for another exception (disability, > substantially equal installments, etc.), he must cool his > heels until 59.5. > But what if, after 55, he returns for one day and then > re-retires? have to retire) either after attaining age 55 or in the year in which you turn age 55. If you pull the plug when you are age 54 and take a distribution, it is subject to the add'l 10% tax. It doesn't matter if you get re-employed by that employer in the following year and separate again. There is no impact to the prior year event. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
01-27-2005, 03:19 PM
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| Re: early distribution Barry Picker wrote: - quote - > "Will5144" <will5144[at]aol.com> wrote:
There is no requirement in the Code that you have to retire.> > I know one can take money from a 403-b account without > > penalty after age 59 and a half and also at 55 if he retires > > then. What about someone who retires at age 54? Can he then > > take it without penalty at 55, or does he have to wait till > > 59 and a half? > You have to wait until 59-1/2, but keep in mind the age 55 > rule is that you have to retire in the year that you reach > age 55. So if you retire at age 54, but it's the calendar > year of your 55th birthday, you're OK. You only have to terminate your employment with that employer within the year in which you reach age 55. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
01-26-2005, 07:43 PM
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| Re: early distribution "Will5144" <will5144[at]aol.com> wrote: - quote - > I know one can take money from a 403-b account without
He has to wait. The age 55 exception applies only if you> penalty after age 59 and a half and also at 55 if he retires > then. What about someone who retires at age 54? Can he then > take it without penalty at 55, or does he have to wait till > 59 and a half? retire within the year you turn 55 (or later). << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
01-26-2005, 07:24 PM
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| Re: early distribution ill5144[at]aol.com (Will5144) wrote: - quote - > I know one can take money from a 403-b account without
Unless he qualifies for another exception (disability,> penalty after age 59 and a half and also at 55 if he retires > then. What about someone who retires at age 54? Can he then > take it without penalty at 55, or does he have to wait till > 59 and a half? substantially equal installments, etc.), he must cool his heels until 59.5. But what if, after 55, he returns for one day and then re-retires? -HW "Skip" Weldon Columbia, SC << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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01-26-2005, 07:04 PM
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| Re: early distribution "Will5144" <will5144[at]aol.com> wrote: - quote - > I know one can take money from a 403-b account without
You have to wait until 59-1/2, but keep in mind the age 55> penalty after age 59 and a half and also at 55 if he retires > then. What about someone who retires at age 54? Can he then > take it without penalty at 55, or does he have to wait till > 59 and a half? rule is that you have to retire in the year that you reach age 55. So if you retire at age 54, but it's the calendar year of your 55th birthday, you're OK. Barry Picker, CPA/PFS, CFP << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
01-26-2005, 05:19 AM
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| early distribution I know one can take money from a 403-b account without penalty after age 59 and a half and also at 55 if he retires then. What about someone who retires at age 54? Can he then take it without penalty at 55, or does he have to wait till 59 and a half? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| distribution, early |
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