IRA Rules

Question: U.S. Retirement IRA Tax Question?

I am under 59 1/2 and have been taking IRA distributions for the last 15 years. These distributions were set up as substantially equal payments over my Life Expectancy (an annuity), and so were an exception to the usual rule prohibiting distributions before age 59 1/2.

The terms of the annuity exception to the 59 1/2 rule make it clear that there could be a recapture tax if the distribution method is changed. But there is a paragraph of Pub 590 that says I can make a one time switch to the required minimum distribution method at any time without incurring the additional tax.

My question:

Does this one time switch to the minimum distribution method exception allow me to discontinue my annuity distributions until I reach age 70 1/2 without incurring any additional taxes or penalties?

Answer: it would seem to me that at age 70 1/2 when the RMD comes into play since you already have a distribution set up that probably was at least the RMD, there would be no change

Investing & Money Management : What Is an RMD?

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