topic Money recieved before age 59 1/2? how does this queston apply to military retirement in Retirement tax questions

Money recieved before age 59 1/2? how does this queston apply to military retirement

jtgirl1957 — Thu, 06 Jun 2019 10:40:18 GMT

money recieved before age 59 1/2? how does this queston apply to military retirement. I am not sure how to answer, my husband started drawing retirement pay at age 44.

If you are retired and start collecting retirement pay, t...

MichaelL1 — Thu, 06 Jun 2019 10:40:19 GMT

If you are retired and start collecting retirement pay, the age 59 1/2 rule does not apply to you on the pension you receive, due to the monthly payments made over the life expectancy of your husband.

Exception to the 10 Percent Penalty:

You can avoid the early withdrawal penalty and receive distributions prior to age 59 — by utilizing Internal Revenue Code (IRC) 72(t). IRC 72(t) provides that qualified retirement plan distributions will not be subject to the early withdrawal penalty if they are made as part of a series of substantially equal periodic payments (no less than annually) for the life (or life expectancy) of the individual or the joint lives (or joint life expectancies) of the individual and his or her designated beneficiary.

Also, thank your husband for his service for our country.

Re: If you are retired and start collecting retirement pay, t...

tomlaube — Thu, 28 Jan 2021 15:12:02 GMT

Not sure that your answer is correct. Military retirement income is from a "Non-Qualified Plan" which does not except them from the 59 1/2 rule.

Re: If you are retired and start collecting retirement pay, t...

lawrence-dring — Mon, 05 Apr 2021 17:40:03 GMT

so how can you take this? internal Revenue Code (IRC) 72(t). IRC 72(t) provides that qualified retirement plan distributions will not be subject to the early withdrawal penalty? My husband served 30 years.

Re: If you are retired and start collecting retirement pay, t...

DaveF1006 — Mon, 05 Apr 2021 19:04:41 GMT

It depends. Please read this IRS link for further information. in your case, Separation from service during or after year employee reaches age 55 (age 50 for public safety employees) Does your husband qualify under this criteria?