Search found 3 matches
- Thu Sep 17, 2020 12:21 pm
- Forum: Personal Finance (Not Investing)
- Topic: Advice needed - CARES and 72(t)/SEPP withdrawal
- Replies: 10
- Views: 714
Re: Advice needed - CARES and 72(t)/SEPP withdrawal
Thanks for all the responses. Fido pointed me to this information, in reading I can't quit the 72T without penalty, and I cannot pay it back and start over with the CARES act. The Notice also clarifies that the removal of the RMD requirement for 2020 does not provide relief for a taxpayer receiving substantially equal periodic payments to escape a premature distribution tax under IRC §72(t): Q–10. Does § 401(a)(9)(I) apply to payments that are part of a series of substantially equal periodic payments under the “RMD method” (a series of payments described in Notice 89–25 and Rev. Rul. 2002–62 that are designed to satisfy the § 72(t)(2)(A)(iv) exception to the 10-percent additional tax under § 72(t)) so that the cessation of the payments for ...
- Wed Sep 16, 2020 12:27 pm
- Forum: Personal Finance (Not Investing)
- Topic: Advice needed - CARES and 72(t)/SEPP withdrawal
- Replies: 10
- Views: 714
Re: Advice needed - CARES and 72(t)/SEPP withdrawal
What I am trying to say is if I break the 72T could I take the amount so far as a CARES act distribution and not pay the 10% penalty. Then start the 72T at a later date.
- Wed Sep 16, 2020 11:16 am
- Forum: Personal Finance (Not Investing)
- Topic: Advice needed - CARES and 72(t)/SEPP withdrawal
- Replies: 10
- Views: 714
Advice needed - CARES and 72(t)/SEPP withdrawal
Background:
I am currently 50.
Unemployed, let go end of 2018.
I have been diagnosed with Sars-CoV-2 by a test approved by CDC.
Advice needed.
Started a 72T/SEPP in January of this year with monthly distribution.
With the CARES act is it possible to break/cancel the 72T without paying the 10% penalty, since it just started this year.
Would I be able to payback the money in line with the CARES act?
Is there anything that is sent to the IRS other then a 1099R? Would it be coded differently for cares instead of a code 1 or 2?
Cheers!
I am currently 50.
Unemployed, let go end of 2018.
I have been diagnosed with Sars-CoV-2 by a test approved by CDC.
Advice needed.
Started a 72T/SEPP in January of this year with monthly distribution.
With the CARES act is it possible to break/cancel the 72T without paying the 10% penalty, since it just started this year.
Would I be able to payback the money in line with the CARES act?
Is there anything that is sent to the IRS other then a 1099R? Would it be coded differently for cares instead of a code 1 or 2?
Cheers!