To avoid this retroactive penalty, here are a handful of important “72(t) don’ts” to consider:
- Don’t roll new money into the IRA account with the 72(t), and don’t make any contributions to that IRA.
- Don’t think you can withdraw more than what the 72(t) payment structure allows.
Don’t handcuff all your IRA money. If the desired annual payout can be achieved with a lower starting IRA value, it is highly recommended that you split the IRA.
More rules are outlined and explained in the download!