Ending 72t 401k withdrawals early: consequences?
There have only been two withdrawals of $7300 (gross) each in Aug. 2014 & 2015, each with 20% Federal Tax and 5% State (MA) tax withheld.
I am no longer funding the whole life policy.
I understand the rules of 72t withdrawals in that I have to continue to withdraw a similar amount annually until I am 59 1/2 (I am 47).
Since I have only made 2 withdrawals, do I have the option of paying the additional 10% withdrawal penalty for tax years 2014 and 2015, and end future withdrawal obligations? Would there be additional penalties and interest for tax year 2014?
I know I need to talk to a tax professional about this. Just though I'd pose the question to this group to point me in the right direction.
Thank you all, in advance