59.5 age

L1: 59.5 ageI turn 59.5in june. Will I bust the SEPP if I take an annual distribution in aug. for less than what I had been taking under the SEPP?2007-02-20 02:29, By: bob, IP: [67.76.8.68]
L2: 59.5 ageNot enough information. When did the SEPP Start?
Best place for you to start s by using the “Last Payment Date” calculator from the menu above. To nmake it easier to find, http://72t.net/Sepp/Irc72tLastPaymentDate.aspx
2007-02-20 02:40, By: Gfw, IP: [74.136.109.63]

L2: 59.5 ageAug 19992007-02-20 02:49, By: bob, IP: [67.76.8.68]

L2: 59.5 ageWhen you used the Last Payment Date calculator, what date was indicated as “First Payment Modification Date” and does that date fall before or after June, 2007?
From the page with the calculator…

The ”First Payment Modificaton Date” is calculated as one day following the later of the end of the 5-year period, or the date you attain age 59.5 – this would be the first possible date to modify (increase, decrease, stop, etc.) the planned SEPP payments without busting the plan. 2007-02-20 02:55, By: Gfw, IP: [74.136.109.63]

L2: 59.5 ageAfter june. But if it is taken after june won”t the trustee code it as a normal distribution for 2007not subject to the SEPP rules?2007-02-20 03:05, By: bob, IP: [67.76.8.68]

L2: 59.5 ageI still don”t know what the date is.
However, if you alter the plan before that date,the answer to your question is, yes you will bust the plan. If you alter the plan after that date, then no you will not bust the plan.
If you are lucky enough to get a code of ”2” for the period covered by the plan, then you will receivetwo 1099s – one for the period covered by the plan and a ssecondfor after the end of the plan.
If not, then you will have to file a form 5329 to claim the exemption for theperiod covered by the plan.2007-02-20 03:13, By: Gfw, IP: [74.136.109.63]

L2: 59.5 ageThe calculator said 8/10/07. Let me start over. For tax year 2007, if I take an annual distibution before 8/10/08 I must conform to SEPP rules. If I take one annual distribution after 8/10/07,can I take less than the SEPP figure even though I was under SEPP rules for seven mos. in 2007?2007-02-20 03:22, By: bob, IP: [67.76.8.68]

L2: 59.5 ageAssuming the 5-year rule isn”t part of the consideration (it was met before 2007) then after attaining age59.5 you have several options:

take zero
take7/12 of the annual
take any amount you desire
The plan effectively ends at age 59.5 and after that point you can take about any amount until you become subject to the Minimum distribution rules.2007-02-20 04:41, By: Gfw, IP: [74.136.109.63]