401K for SEPP funds

L1: 401K for SEPP fundsAnother question in regard to using a 401K to fund a SEPP plan. I have a 401 that allows withdrawals as often as every two weeks, for a minimum of $500. They will only pay whole dollars, no pennies, and will not schedule the distributions; I must request each one. Also, the plan also plans to begin charging twenty dollars per quarter for maintenance fees.Will the maintenance fees cause any problem? Is there any significance to having the distributions automatically scheduled?Thanks much,Ray2006-12-06 00:04, By: Ray, IP: [66.27.171.151]
L2: 401K for SEPP fundsHello Ray:
There is no significance to your account being charged a quarterly maintenance fee. The IRS ruled years ago that service / investment advisory fees fremoved from a deferred account are not taxable income to the account owner. Regarding automatic scheduling of distributions, I am personally against them. By doing so, you are essentially turning control of your SEPP plan over to a computer. Computers make errors as several PLRs on this subject have demonstrated. Those errors are your errors until proven otherwise; therefore I personally like quarterly distributions under the manual control of the taxpayer.
TheBadger
wjstecker@wispertel.net

2006-12-06 05:19, By: TheBadger, IP: [72.42.67.38]