2nd Year of SEPP
L1: 2nd Year of SEPPDOB: 10/24/58
I started my SEPP last year using Life Expectency Method, one time distribution for the year received on, 3/20/2013.
Date of Brokerage Statement Used: February 2013
For this year, 2014, I am planning on another annual distribution. Here are a couple of questions:
1. Is it correct/okforme to go ahead and use my Dec 2013 Brokerage Statement balance for the distribution to be made on, 3/20/2014?
2. It seems so simple, but am I correct that the calculation for determining the distribution for, 2014, is the Brokerage balance divided by the number from the Life Expectency Table?
3. Is it absolutely necessary for the annual distribution to occur exactly on the 20th of March? What if occurs a day later, or earlier?
2014-01-14 19:42, By: kitsap2, IP: [18.104.22.168]
L2: 2nd Year of SEPP1) Yes, that is OK as RR 2002-62 includes an example that allows you to use either the prior year end value or another date that represents the value of your account in the current year. I would recommend just using the prior year end value on 12/31 of 2013 and likewise in subsequent years. And you do not have to take an annual distribution on the same date each year.
2) Yes, if you are using the correct table, which means the same table you used in the prior years andone of the approved tables. Your age willbe one year older each year. Most people use the single life table in Pub 590, as it produces a higher distribution than other tables and the divisor is shown in Pub 590 for age ages.
3) Not necessary. Does not even have tobe in March. Couldbe in a different month. Your plan will end 4/25/2018, a day after you reach 59.5 and a month later than 5 years from your first distribution.2014-01-15 01:28, By: Alan S, IP: [22.214.171.124]
L3: 2nd Year of SEPPThanks, Alan!2014-01-16 01:43, By: kitsap2, IP: [126.96.36.199]