carolinawind
Jul 25 2005, 09:56 AM
A person, age 72 makes a large withdrawal from his IRA. Can the taxes due on the withdrawal be stretched over a period of 10 years?
Belgarath
Jul 25 2005, 11:15 AM
No. The 10 year averaging applies to certain lump sum distributions from qualified plans, but not to IRA's.
BPickerCPA
Jul 26 2005, 07:05 AM
Even for a distribution that qualifies for ten year averaging, that does not give you ten years to pay the tax. Ten year averaging (simplified version) is a computation that basically computes the tax on one-tenth, and multiplies it by ten. But the tax is still due all in one year.
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