SEPP plus earned income

L1: RE: several questionsWhat is a PLR? I’m 52, considering early retirement and hearing that my only option for getting my hands on my money (with no penalties involved)is 72t. I will have to take the money for 7 and a half years. I am concerned at what I’m reading about 72Ts running out of money before the time period is up. What is the penalty if that happens? What is a PLR?2002-04-03 14:39, By: newbie, IP: [127.0.0.1]
L2: RE: RE: several questionsA PLR stands for “private letter ruling”; essentially a ruling between you & the IRS based on your specific fact & circumstances. It is binding on the IRS & is therefore the ultimate “get out jail free” card; but they are relatively pricey to get; typically in the $2000 and up range.Most people who commence SEPPs do not get PLR’s and don’t need them. It is relatively easy to design a safe SEPP program that both meets IRS requirements as well as insures (or at least mitigates) against running out of assets before age 59 1/2. However, let’s take the absolute worst case. You design an appropriate SEPP program, but through no fault of your own, the IRA still runs out of assets before your 59 1/2 birthday thus prohibiting you from completing the SEPP program. It is my professional opinion that, albeit harsh, the IRS will have no alternative but to impose the 10% surtax penalty as well as intervening statutory interst.If you would like some mre detail guidance/thoughts on these issues, feeel free to drop me a note @ wjstecker@wispertel.netTheBadger2002-04-03 22:04, By: TheBadger, IP: [127.0.0.1]