1 Substantially equal periodic payments are taken based on the life expectancy of the recipient. (Many advisors call this option 72(t) distribution because of the section of the Internal Revenue Code where the penalty and exception reside.) Payments must be made for the greater of five years or the attainment of age 59½ or the 10% penalty reattaches (retroactively) to all distributions made before age 59½.
There may be fees, expenses, taxes and penalties associated with early IRA withdrawals.
Lord Abbett will waive (or otherwise pay) the yearly $10.00 custodial fee that would be charged each year on an ongoing basis to every new IRA account and, therefore, will not assess a custodial account fee in 2014 or any year afterward. Fund level fees and expenses are still applicable. Please see the current prospectus.
To comply with Treasury Department regulations, we inform you that, unless otherwise expressly indicated, any tax information contained herein is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed under the Internal Revenue Code or any other applicable tax law, or (ii) promoting, marketing, or recommending to another party any transaction, arrangement, or other matter.