72 t SEPP plan and employer contributions to 401ks

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L1: 72 t SEPP plan and employer contributions to 401ks
I am 52, (7/1/1966), and plan on setting up a 72t to start next year (1/1/2019 to manage tax rate in retirement.
Theopen question I am unsure of is as follows:
Assuming I start a SEPP plan for one account on 1/1/2019,can onestill take advantage of 401k employer contributions or contribute to a 401k myself? In other words, does starting a SEPP plan on one account preclude pre-tax contributions to other retirement accounts?
2018-03-05 12:40, By: Ts2q, IP: []

L2: 72 t SEPP plan and employer contributions to 401ks
If you need to take IRA distributions while still working, you can establish a SEPP using your IRA account, while still making contributions to your 401k at work, or even to another IRA that is not associated with your SEPP plan. While it usually makes no sense to both contribute and withdraw at the same time, you might want to do it to get your employer match for the 401k. However, once you start the SEPP you will have to continue it until 59.5, and since you are still working, you will probably be paying a higher tax rate than you will once you stop working.
The more ideal time to draw down your IRA is the period between retirement and 70.5 and/or the start of SS benefits. During that window you can often convert to a Roth IRA at a low rate (as long as you pay the taxes with other funds) which will reduce your RMDs at 70.5.
2018-03-05 15:51, By: Alan S, IP: []

L2: 72 t SEPP plan and employer contributions to 401ks
Please explain why you want to continue to make 401-K contributions while still working, as well as starting to take SEPP 72-T distributions.
1. How much is in your 401-K ?
2. How much are you planning to contribute to your 401-K each year ?
3. How much do you need that you are setting up a SEPP 72-T ?
4. Is there company stock in your 401-K ? If so, then ask about the NUA cost basis.
5. If you plan to “separate from service” at any time in 2021, then you will be able to take any distributions whenever you want without the 10% penalty, if your employer plan allows partial distributions. So, if you can get to Jan 2021 without a SEPP 72-T, this might be better than setting up a SEPP 72-T for 7 years.
2018-03-05 17:35, By: dlzallestaxes, IP: []