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72(q) Distributions

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ByGwen

L1: 72(q) DistributionsGot another question. I have a client who turned 59.5 back in May 2006 he”s been taking 72t distributions since 1999. I believe he satisfies the requirements to stop the distributions. Can he stop them now? 2007-01-22 09:19, By: Gwen, IP: [216.199.202.26]
L2: 72(q) DistributionsHi Gwen:
As long as the correct, total amount of money is distributed for the year, you are OK. However, I suggest you ask the new carrier how they are going to work with you after the transfer. Let me share my experience with annuity providers.
I have found a common interpretation of the SEPP rules with the carriers that I use. They have determined that only one contract / account can be used per SEPP Plan. They don”t recognize multiple annuities as parts of one SEPP Plan. They require each annuity to have it”s own SEPP Plan, and the distribution amount must be calculated based on the initial amont and factors when they start distributions.
Having set this scenario, my suggestion for you is to contact the new carrier and determine how they will handle the transfer from the old carrier. Will they accept the old carrier”s calculations of the SEPP Plan or will they require new calculations? If they require new calculations, then you have a problem. I think it will be almost impossible to match the current distributions at the old carrier with the new calculations at the new carrier.
Good luck.
Jim2007-01-22 09:39, By: Jim, IP: [70.184.2.72]

L2: 72(q) DistributionsThanks for the quick reply Jim. You”ve been very helpful.2007-01-22 09:49, By: Gwen, IP: [216.199.202.26]

L2: 72(q) DistributionsLook in the top menu for the “Last Payment Date” Calculator.2007-02-01 10:56, By: Gfw, IP: [24.148.85.129]

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