3rd SEPP distribution timing
L1: 3rd SEPP distribution timingDOB 9/25/63
Started a SEPP plan late Dec. 2014 (did NOT elect totreat 2014 as a stub year)and took the 1stdistribution Dec. 26th, 2014 (lump sum).
Took the 2015 distribution Jan. 14,2015 (lump sum)
Is there any rules whichdemand thatfuture distributions must be taken on the same date (Jan. 14th)in 2016 andbeyond, OR will the perception be negative to IRS or does it throw up any red flags if the futuredistributionsare taken monthly, quarterly, annually…as long as it adds up correctly each year?2015-12-28 19:46, By: heartysavor, IP: [18.104.22.168]
L2: 3rd SEPP distribution timingYou can change frequency of payments every year, or even within a year. The only requirement is that you have the same annual distribution, except for prorata ones in the first and last year, at your option.
The IRS has no way to determine the frequency of payments, except under audit, and even then it should not be any problem as far as disallowance.2015-12-28 20:18, By: dlzallestaxes, IP: [22.214.171.124]