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I'm taking withdrawals under rule 72t. I retired early but I have been given an offer to go back to work that will be really hard to refuse. If I decide to go back to work, can I make new contributions to a qualified plan (401k, 403b, etc.)? If I can make contributions, are there any tax ramifications on the past or future withdrawals.

Current withdrawals from your existing deferred accounts under §72(t)(2)(A)(iv) stand on their own and are unrelated to anything else that might happen. As a result, you are free to seek new employment & if accepted you can make new contributions to 401(k)'s, IRA's, etc. However, if you make an IRA contribution as a result of earned income from a new job, DO NOT make that contribution to an IRA from which you are currently taking distributions; make it to a new IRA account. Needless to say, just because you may choose to become re-employed; you must continue the §72(t) distributions.


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