SEPP

L1: SEPPIf I am taking SEPP distributions prior to 59 1/2, must the payout be locked in, or can I still have the option to foul it up and take a greator or lessor amount? 2002-05-06 11:27, By: Jim, IP: [127.0.0.1]
L2: SEPPTaking more than, or less than, the amount called for by the plan would results in a “busted” plan. When you bust a plan, you owe the 10% penalty (plus back interest) on previous withdrawals.2002-05-06 12:06, By: Gfw, IP: [127.0.0.1]

L2: SEPPI thought that, in the early days of the SEPP exception, the IRS insisted that the payout be fixed. i.e. I couldn’t take more or less than the SEPP amount even if I wanted to — knowing that to do so would bust the plan and trigger the 10%penalty on all previously distributed amounts. 2002-05-06 14:41, By: Jim, IP: [127.0.0.1]

L2: SEPPAnd they still do! The payment structure of a SEPP plan, once implemented, cannot be changed – that hasn’t changed.2002-05-06 14:49, By: Gfw, IP: [127.0.0.1]