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gregmey
gregmey, CPA
Category: Tax
Satisfied Customers: 147
Experience:  Certified Public Accountant & Certified Financial Planner
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I had a follow up question...If I withdraw equal periodic payments

Customer Question

I had a follow up question...If I withdraw equal periodic payments from IRA during a five year period am I void of the 10% IRS penalty? I'm under 59.5 years of age.
Submitted: 4 years ago.
Category: Tax
Expert:  gregmey replied 4 years ago.

gregmey :

Hi, my name is Greg and I'm happy to help you with your question today.

gregmey :

A 72(t) election allows IRA owners to avoid the 10% early withdrawal penalty if they elect to withdraw the funds in substantially equal periodic payments.

gregmey :

The payments must continue for 5 years or until 59 1/2, whichever comes later.

gregmey :

So, the answer to your question is yes. You can avoid the 10% penalty as long as the substantially equal payments continue for at least 5 years or until 59 1/2.

gregmey :

Thanks, Greg

gregmey :

Please let me know if you have any additional questions.