72t – Substantially Equal Periodic Payments – IRC – Internal Revenue Code

2007 0910 - FINRA - Remarks at the SEC Seniors Summit, Mary L. Schapiro, Chief Executive Officer - [link]
- The second new sweep targets deceptive early retirement seminars, often relying on IRS Regulation 72t, which permits early withdrawal from a retirement account without the usual tax penalty.
  - These programs pressure individuals who are still working to move their retirement assets to a specific firm or representative, often promising unrealistic returns on an investment through the use of misleading projections.
  - In the past year, FINRA has fined two firms $5.5 million and ordered them firm to pay $26 million in restitution related to early retirement investment schemes aimed at Exxon and Bell South employees.

- LC - Ciofoletti V. Securian Fin. Grp., No. 0:18-cv-03025-JNE-ECW (D. Minn.) – filed in federal court in St. Paul, Minnesota
Doc. 151-21 - Ed Storer Deposition
- (p26) - And we had this case, as I explained earlier, where we needed to do it prior to age 59 1/2 through a 72t, which is a code in the tax law, and we asked their recommendation. And this was the recommendation that was given to me from Shurwest and Mel.

Speaking from my IMSA experience, there's a lot of emphasis on internal replacements, replacement activity, trying to meet those definitions, and track that activity, but beyond that, not much is captured in the applications.
But at some companies that I've talked to, there's a real concern about funds coming from a lump sum paid out of a 401(k) plan.
The concern is that these are qualified monies, and that somehow a broker/dealer/sales agent rolls them into a non-qualified variable annuity.
That would really be ripe for some kind of abuse because you're probably not helping out that customer.
So you have to go through a litany of questions with the customer, like:
- "Is this the right time to buy this annuity?
- Are you fully funding your 401(k)?
- Are you in your deferred comp plan at work?"
We need to determine the right choice and order of priority for some of those kinds of issues.
Regulators make a comparison with the existing insurance program to determine if a company is really looking at the customer's profile.

-- Dana Mr. Rudmose, not a member of the sponsoring organizations, is Director of KPMG Peat Marwick in Columbus, OH

1998 - SOA - Market Conduct: A New Actuarial Frontier, Society of Actuaries - 20p