Last payment

L1: Last payment
Sir, could you answer a question? Facts: payment #1 10/15/99 Age 55 (DOB 4/1/44), payment#2 10/15/00, #3 10/15/01, #4 10/15/02, #5 10/15/03. Reached age 591/2 on 10/1/03.
Do I have to take a payment (distribution) in 2004? Your “Sepp Payment Modification Date”
calculator would indicate I have to take at least one more SEPP payment prior to 10/15/04. I believe I have met the 5 yr. requirement (after all I have taken 5 payments).
Thanks
Bob 2004-01-12 15:36, By: Bob, IP: [209.179.168.55]

L2: Last paymentFrom the calculator…The ”First Payment Modifiaton Date” is calculated as one day following the later of the end of the 5-year period, or the date you attain age 59.5 – this would be the first possible date to modify (increase, decrease, stop, etc.) the planned SEPP payments without busting the plan.
This doesn”t mean that you have to take another payment on 10/15/2004, but that you can”t modify the schedule until 10/15/2004.
The five year period ends on 10/14/2004 – You took an annual payment on 10/15/2003, just don”t take any more until after 10/14/2004.

2004-01-12 15:44, By: Gfw, IP: [172.16.1.70]

L2: Last paymentHello Bob:
Actually it is the reverse. Any distribution before 10/15/04 will be considered an extra distribution & is not allowed.
TheBadger
wjstecker@wispertel.net
2004-01-12 15:44, By: TheBadger, IP: [38.116.134.130]

L2: Last paymentLet me modify Bob”s scenario to explore a point. Assume Bob started SEPP in 1997 vs 1999 so he would have taken 7 distributions instead of 5 by 10/15/03.By this time he would have satisfied both the 5-years and age 59 1/2 requirements, and he has taken the “minimum” amount so his distributions are all “equal.” Now assume Bob takes an additional $10,000 from the IRA on 11/15/03.
Q1. Will Bob receive one or two Form 1099-R”s from his custodian?
Q2. If Bob only receives one form, will it have two distribution codes; one for the SEPP and one for a “Normal distribution after 59 1/2?”
Seems that his custodian has to keep track of what distributions are SEPP and which are something else.2004-01-13 14:12, By: Jim, IP: [68.1.147.61]

L2: Last paymentShould receive two – one for the SEPP and the other for the additional payment.2004-01-13 14:18, By: Gfw, IP: [12.221.34.192]

L2: Last paymentQ1. Will Bob receive one or two Form 1099-R””s from his custodian?
Two. One with code “2” and one with code “1”.
Q2. If Bob only receives one form, will it have two distribution codes; one for the SEPP and one for a “Normal distribution after 59 1/2?”
Can”t happen as there is no provision or ability to issue one 1099R with two codes on it.
Seems that his custodian has to keep track of what distributions are SEPP and which are something else.
The custodian should, however, slip-ups here are common and of no consequence; e.g. no harm no foul. More importantly, it is the taxpayer”s responsibility to keep this straight and to inform the custodian in writing.
TheBadger
wjstecker@wispertel.net2004-01-13 14:19, By: TheBadger, IP: [38.116.134.130]