Questions and Answers
One of our IRA owners wants to begin taking substantially equal periodic payments under IRC Section 72(t) beginning in June. Can he take only seven distributions in 2008 (for June through December), or does he need to take a full year's worth of distributions for 2008?
Private Letter Ruling (PLR) 9049044 allowed an individual to calculate distributions based on the number of months remaining in the first year. Distributions in subsequent years would be based on a 12-month period. PLR 9021058 similarly allowed an IRA owner to base distributions on a 12-month period other than a calendar year. Thus, taking monthly distributions from June of 2008 through May of 2013 would satisfy the five-year requirement explained in IRS Revenue Ruling 2002-62, which modified IRS Notice 89-25.
Please note that a PLR does not set legal precedent and can only be relied on by its requester.
(Posted: 12/19/2007)
