72q

L1: 72qMy wife setup a SEPP 72q for a non qualified annuity seven years ago. There are two annuities that were in the “72q universe”.One annuity is about is going to run out of money this year. My question is, should I let that happen and pay no penalty since the distribution will not be made due to the fact it ran out of money, or must I increase the distribution from the other annuity to maintain the same amt. of distribution since they are from the same SEPP universe?2006-04-22 08:08, By: bob, IP: [67.76.8.13]
L2: 72qAssuming that you have documentation showing that both annuities were in the ”universe”, then you can use both annuity contracts for the payment – at the level outlined by the plan you adopted. This would typically be the same documentation that shows the universe, the annual payment and assumptions used.
2006-04-22 12:50, By: Gfw, IP: [24.148.5.55]

L2: 72qHerdocumentation states the total value ofeach annuity at the beginning date and then the total of both as the basis for the SEPP. However, she receives a 1099r from each annuity for wlthdrawals. We would prefer to just let the one go broke rather than to take more out of the other.2006-04-22 13:03, By: bob, IP: [67.76.8.13]

L3: 72qSorry, but what you prefer isn”t an option.
If the calculated withdrawal was based on the combined value of the annuities – as you stated in your initial post- then the calculated withdrawal must be taken – whether it is from one of the annuities, or both.
In short, basedon your explanation, she will be taking the full distribution that was comming from both annuities from the annuity with remaining value. To chage the amount of the withdrawal will ”BUST” the plan – she wil owe penalties and interest since day 1!
2006-04-22 14:35, By: Gfw, IP: [24.148.5.55]

L2: 72qSorry, but what you prefer isn”t an option.
If the calculated withdrawal was based on the combined value of the annuities – as you stated in your initial post- then the calculated withdrawal must be taken – whether it is from one of the annuities, or both.
In short, based on your explanation, she will be taking the full distribution that was comming from both annuities from the annuity with remaining value. To chage the amount of the withdrawal will ”BUST” the plan – she wil owe penalties and interest since day 1!2006-04-22 15:04, By: gfw, IP: [24.148.5.55]