5 year end and calendar year 1099

You are here:
< Back

L1: 5 year end and calendar year 1099Mydistributions began 1/17/06. I am planning to take my annual distribution through the calendar year each year. My first modification date per the calculator is 1/17/11. Do I have to show any distribution between 1/1 and 1/17/11? 2006-01-24 15:07, By: squeaky, IP: [69.238.169.151]
L2: 5 year end and calendar year 1099If using the 5-year rule (and also assuming that you are over age 59.5 at teh end of 5-years), you want to make sure that you distribute 5 annual payments and that there are no changes in the schedule and no additional payments are made until the end of the 5 years.
2006-01-24 18:35, By: Gfw, IP: [172.16.1.75]

L2: 5 year end and calendar year 1099Let me see if I can ask my question more specifically.
2006 Calendar Year: distribution begins 1/17/2006. I have distributions totalling $$ by 12/31/2006. I have the same amounts during calendar years 2007, 2008, 2009, 2010. So I have five full years at the same amount. I turn 59 1/2 on 1/13/11 and my first modification date is 1/17/11.Itake a different amount or no amount in 2011. Have I satisfied the SEPP requirements correctly?
thanks2006-01-24 18:46, By: squeaky, IP: [69.238.169.151]

L2: 5 year end and calendar year 1099I think you are asking about what your options are between 1/1/11 and 1/17/11. The IRS has not been real specific on this, but the general consensus is that:
1) You can take nothing
2) You can take the prior full annual amount
3) You CANNOT take more than the annual amount; that’s a bust.
You can also probably pro rate the annual amount, but there is no reason to do this when you will have no restrictions as of 1/17. Save yourself a separate 1099R and the possibility the custodian would code it a “1” for those first 16 days. As Gordon said, be sure you are also 59.5 as well as meeting the 5 year requirement.
2006-01-24 22:40, By: Alan S., IP: [24.116.165.157]

L2: 5 year end and calendar year 1099Hi Squeaky:
Alan is absolutely right; don’t take ANY distributions in 2011 until AFTER 1-17-2011, preferably after 1-19-2011. Doesn’t hurt to have a little “pad” in the dates.
Any distributions in 2011 before your age 59.5 will be coded for the 72(t) exception, assuming your custodian does that part right. Any distributions after your age 59.5 will be coded as normal. So by waiting to take any distributions in 2011 until you satisfy both the 5-year rule and your age is 59.5 should avoid any 1099-R coding errors. Notice I said “should avoid” because anything can happen. But if the coding is working OK in all years through 2010 then it should work out just fine for 2011.
Jim2006-01-25 08:09, By: Jim, IP: [70.184.1.35]