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1st year disbursement

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Bydillonfan

L1: 1st year disbursementMy husband wants to break off part of his IRA to start taking SEPP payments. He is 52 1/2 and I am 49. Now that it is already August, can we still take the full annual SEPP amount this year? Or does it have to be prorated? Please clarify the rules/options available to us for the first year and beyond. Also, his IRA is with Merrill Lynch, who according to what I can find, will do SEPP payments and handle the paperwork. Has anyone had any dealings with Merrill Lynch?2007-08-06 02:12, By: Dillonfan, IP: [66.117.250.141]
L2: 1st year disbursementIn the first year you could take the full annual amount or pro-rate based on the number of months between the month the first payment is made and year end.
At age 52 (or 53, there are no 1/2 years for determining teh initial age) the plan will last until age 59.5.

2007-08-06 04:51, By: Gfw, IP: [65.211.152.132]

L2: 1st year disbursementBe sure that when you “break off” part of the IRA that it goes into a totally separate IRA account. You cannot just assign part of a single account to a SEPP calculation. You and/or ML probably know that, but did not want to assume that was the case.2007-08-06 10:12, By: Alan S., IP: [24.116.165.60]

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