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Author: nhewitt Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Rule 72t and contributions to qualified accounts Date: 3/4/2000 1:19 PM
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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.
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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2692 of 19483
Subject: Re: Rule 72t and contributions to qualified acco Date: 3/4/2000 1:26 PM
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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.

TheBadger





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Author: ed6713 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2697 of 19483
Subject: Re: Rule 72t and contributions to qualified acco Date: 3/4/2000 9:05 PM
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Hello again TheBagder.
Isn't there a restriction of some type about retiring, taking the 72(t) withdrawal and then going back to work for the SAME employer?
(*_*)
V

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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2698 of 19483
Subject: Re: Rule 72t and contributions to qualified acco Date: 3/4/2000 9:08 PM
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There is no problem about going back to work & there is even no problem going back to work for the same employer; difficulty could arise regarding becoming a reinstated member of the same qualified plan --- I would have to think about this one as I have never faced it before.

TheBadger


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Author: mdorsey One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2700 of 19483
Subject: Re: Rule 72t and contributions to qualified acco Date: 3/4/2000 10:50 PM
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Continue SEPP till you are 59 1/2 or 5 years which ever is longer.

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