Cost to Bust Calculator

L1: Cost to Bust CalculatorIs the calculator correct if a person who starts a SEPP at 58 and busts plan at age say, 62, seeing that there are no penalties for the withdrawals taken after age 59.5 according to the recent response of Alan to Sparky”s question?2006-10-03 18:48, By: Rog, IP: [71.227.54.199]
L2: Cost to Bust CalculatorGenerally penalties stop at age 59.5.
However, if you start a SEPP at age 58 then the SEPP must last a minimum of 5 years following the date of the 1st payment.
Bust the SEPP and you will owe back penalties and interest.

2006-10-03 19:02, By: Gfw, IP: [172.16.1.70]

L2: Cost to Bust CalculatorFrom Alan”s post… If you did that, the withdrawals after you turn 59.5 will be exempt from the penalty. However, you still will bust the SEPP and that will result in retroactive penalty back to the first SEPP year plus interest.
The calculator shouldn”t be imposing any penalties after age 59.5 – we”ll have to correct it in the next few weeks. Interest on past due penalties would continue to accumulate.
The real question – if you are starting a SEPP at 58 and planning on breaking it in the next few years, wouldn”t you be better off either taking the distribution and paying the penalty or borrowing the funds from some other source until you are age 59.5

2006-10-03 19:12, By: Gfw, IP: [172.16.1.70]