SEPP and annuitization

L1: SEPP and annuitizationWould a variable annuitization qualify as an SEPP or would it be considered a modification of the SEPP when the payment changes?2002-06-13 08:32, By: Sten, IP: [127.0.0.1]
L2: SEPP and annuitizationHello Sten:I am guessing from your post that you are referring to commencing early distributions from a variable annuity contract. If this is the case, the qualification of the SEPPS is governed under 72(p); not 72(t). As a result, you really need to get an opinion from the life insurance company that sold you the contract & have them give you a copy of their qualifying letter from the IRS. If this is not your question, then please try it again with some additional specificity.TheBadger2002-06-13 13:41, By: TheBadger, IP: [127.0.0.1]

L2: SEPP and annuitizationThe only PLRs that I have seen on annuity contracts, extend the same basic calculation method outlined in 89-25 to an annuity contract under 72(q).If I were going to do an annuitization (and at your age I never would), I would design a plan based on the distribution of a fixed number of units each period. First, however, I would contact the annuity insurer for any information/rulings that they may have already obtained, or I would request a PLR outlining the plan.Why not just stick to one of the 3 basic payment plans?2002-06-17 15:48, By: Gfw, IP: [127.0.0.1]