5 years or 59.5???
L1: 5 years or 59.5???I hope this is a quick answer as I feel I should have a handle on this but I don’t…
Under the FAQs I found the following:
A. Once started, these payments must continue for the longer of five payment years (from the date of the first distribution) or until age 59-1/2.
I’ve been aware of this since I set up a “4 taxes” SEPP in Nov. ’07… the account was specifically setup to draw from each Nov. to help cover taxes… so I’ve taken an annual distribution in 07, 08, 09, 10 & 11… I turned 59.5 on Aug 10th, 2012… it’s the word “from” in the parentheses that is throwing me off… “from” ’07 to ’12 is five years… so do I need to take another distribution this Nov.??? or am I good because I’ve taken 5 payments and I’m now over 59.5???2012-11-20 19:34, By: ZenKen, IP: [184.108.40.206]
L2: 5 years or 59.5???Your plan ends 5 years from date of first distribution, or having attained the age of 59 1/2, or whichever is longer.
In your case it will end 60 months plus one day from the date of your first distribution.2012-11-20 19:50, By: Scott, IP: [220.127.116.11]
L3: 5 years or 59.5???Thank you Scott… the “60 month” clears things up… I need to make one more distribution and I’m done.2012-11-20 20:08, By: ZenKen, IP: [18.104.22.168]
L4: 5 years or 59.5???That depends on whether you took a full, or partial distributionin 07. If you’ve taken five full annual distribution you must wait until the 60 month time period expires. Then you may do as you wish.
If you took 2 months in 07 then you must take 10 months prior to its expiration. It must equal 60 months. No more, and no less.2012-11-20 20:17, By: Scott, IP: [22.214.171.124]
L5: 5 years or 59.5???Since you have now taken 60 months worth, and your plan ends sometime this month (you did not provide exact date of first distribution, do not take any more distributions until after your modification date described earlier.
After that date you can do anything you wish, but if you want to avoid having two 1099R forms to report on your tax return, wait until next year. You can certainly take a December distribution if you really need the money and it will not affect your SEPP, but you will have two 1099R forms to report and higher taxable income for 2012.
2012-11-20 20:58, By: Alan S, IP: [126.96.36.199]
L6: 5 years or 59.5???I don’t need the money Alan… but are saying I still can’t take a “normal” (non SEPP) distribution from that account until 2013 even though my SEPP time limits have been met???2012-11-20 21:13, By: ZenKen, IP: [188.8.131.52]
L5: 5 years or 59.5???Then it looks like I’m done… because I did take an “annual” distribution in ’07… so it’s the equivalent of 60 months of distributions rather than 60 months “from” first distribution??? the way I did it would mean it is actually as though I started my SEPP in Jan. ’07… correct??? a little confusing… but does that sound right to you Scott???2012-11-20 21:05, By: ZenKen, IP: [184.108.40.206]
L6: 5 years or 59.5???ZenKen… If you want a specific answer, give sufficient information.
What is your date of birth and what was the date of the first distribution?
Without that information, all is merely a guess.2012-11-20 21:12, By: Gfw, IP: [220.127.116.11]
L7: 5 years or 59.5???DOB – 10 Feb 1953
First Dist. – Wednesday, Nov 7, 20072012-11-20 21:16, By: ZenKen, IP: [18.104.22.168]
L8: 5 years or 59.5???
From our 12st modification date calculator athttp://72t.net/72t/Calculator/First/Modification/Dateand a DOB of 2/10/53 and a 1st payment date of 11/7/2012…
Date Age 59.5
5 Year Date
1st Modification Date
If you have taken 5 annual distributions in November of 07/08/09/10/11 then the plan ended on 11/08/2012. The answer is simple if you provide sufficient information
2012-11-20 21:22, By: Gfw, IP: [22.214.171.124]
L9: 5 years or 59.5???There are two requirements here, as you had a 5 year plan:
1) You must take 60 months of distributions – you did that even though your last distribution was a year ago. Requirement satisfied.
2) You cannot take a non SEPP distribution before the plan ends (modification date). Since your plan formally ended on 11/7 plus one day safety margin, you are now free to take out anything you wish since 11/8 has passed.
You are in compliance as long as the original calculations were correct. I assume you did not take any distributions at all in 2012 to this point. That is fine.
2012-11-20 22:36, By: Alan S, IP: [126.96.36.199]
L10: 5 years or 59.5???Belated thank you Alan… your clarifications tell me exactly what I needed to know and are greatly appreciated…2012-11-27 21:06, By: ZenKen, IP: [188.8.131.52]