Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: gurdison Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121258  
Subject: 59 and a half Date: 7/31/2012 12:46 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Can you define exactly what this means in terms of the 10% early withdrawal penalty for IRAs?

I know what it means in English, but in tax speak (written by well regarded members of congress) it can have all kinds of slightly different meanings. I know that one is no longer penalized once they reach that number. But before making any moves, it is important to make sure there are no misunderstandings on what should normally be a really easy concept.

So lets start simply. A person turns 59 on say April 10. That would mean that they turn 59 1/2 six months later on October 10. In order to avoid the 10% penalty, what exact date could the earliest IRA withdrawal occur on?

Is it:

October 10 (the day one turns 59 1/2)
October 11 (the first full day after one turns 59 1/2)
November 1 (the first of the month after one turns 59 1/2)
January 1 (the first day of the first quarter after one turns 59 1/2)
Some other date that I am not even thinking of as a possibility.

I am hoping that the answer is indeed simple and not subject to wide interpretations. Thank you in advance.


B
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

My Big Fat Greek Splat
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement