L1: 72TYour website cautiously but clearly recommends using a specialist of some kind to make the 72T calculations for me. I have learned a lot about what I am trying to set up but I realize, in order to avoid costly errors, I need assistance.
I have tried unsuccessfully to find someone who offers this service! My IRA is with TIAA CREF and they suggested “an accountant/CPA”. I have contacted several plus some investment companies and I get this impression no one wants to make these calculations. PLEASE: Who can help me determine these figures ASAP, correctly and at a reasonable cost?
Lone Wolf2010-06-28 15:23, By: Lone Wolf, IP: [220.127.116.11]
L2: 72TI have the exact question. (GREAT QUESTION)I don’t understand why it needs to be this difficult.There are only 5 or 6 numbers that need plugged into the formula’s.The formula’s seem to be very simple and the numbersseem to bevery basic …. I THINK ….. LOLSOMEONE PLEASE HELP US2010-06-28 16:59, By: Ricj in Ohio, IP: [18.104.22.168]
L3: 72TPlugging the figures into the formulas is the easy part. But there is financial and tax planning that should also be done, independent of any decisions about the specific investments.1. How old are you?/ date of birth ?2. What is your total IRA universe ?3. How much do you need for the balance of 2010 ?4. How much do you need annually after 2010 ?5. Do you have a 401-K, or an employer-paid retirement plan ?6. Have you “separated for service”? Is there “employer companystock” ( NUA) in your 401-K or company plan ? ( IRAs do not count for this special provision.)8. Do you need funds for any of the other exempt/exclusion purposes ?9. Are you married ?10. What is your tax bracket for 2010 ? 2011, etc. ?These are just the basic questions that need to be answered for a professional response, and SOME of the planning to be considered in every situation. (And then consideration of SS benefits, ROTH Conversions,etc.) Doing it “cheaply” or by yourself can become very expensive if done incorrectly. If it was easy to do, there would not be 500,000 postings on this website. And no one would have bought our guru’s book. And we wouldn’t even need this website. Look athow many postings refer to problems with IRS, busted plans, dealing with the custodians, etc.2010-06-28 17:31, By: dlzallestaxes, IP: [22.214.171.124]
L2: 72THello, Lone Wolf:
Vanguard has a small 5-page brochure that discusses SEPP basics. It is worth getting. You can find it on their web site by using the Search box and putting “SEPP” in the box. That will bring up 3 references, the 1st of which is the brochure. You will need the free Adobe Acrobat Reader program on your computer to read it.
A few years ago, Vanguard had an excellent 20-page brochure that covered SEPP basics quite well and that also had some work sheets that could be used to do the SEPP calculations. I found this to be VERY useful in setting up my SEPP. I used the worksheet for the amortization method, got my distribution amount, and then used the SEPP calculator on this web site to generate an independent distribution amount. The numbers agreed to within about $.50, which is very good. Getting confirmation like this gave me the confidence to proceed with setting up my SEPP. My SEPP completed last March and without any problems.
If anyone would like to receive a copy of the older and larger brochure, I would be happy to email one to them… Gfw permitting, of course.
2010-06-29 06:14, By: Ed_B, IP: [126.96.36.199]
L3: 72TEd, please send me an email copy of the 20 page SEPP”older and larger brochure” from Vanguard.Use Email address: firstname.lastname@example.org Thank You, Rick in Ohio2010-06-29 10:25, By: Rick in Ohio, IP: [188.8.131.52]
L4: 72TThe information to establish and run a successful 72(t) SEPP Plan is all available on this website. Depending on your knowledge about investments and financial planning will determine how much outside assistance you will need. Most people, about 80%, need a lot of help. Another 10% don’t think they need help but they really do. That leaves 10% who are self-sufficient to do everything. Given these statistics you can understand DLZ’s comments about “getting professional help.”72(t) is a tax issue so normally only CPA’s and tax attorneys have the proper malpractice insurance coverage to be able to make the calculations. While financial planners … me for one … have the knowledge and experience to set up a proper SEPP Plan for clients, we aren’t covered to “give tax advice” and setting up a plan is definitely “giving tax advice.”Bill Stecker, CPA, who posts here as “TheBadger,”(BTW, Bill, haven’t heard from you in a while)wrote the book on 72(t) and it is available on this web site under “Website Sponsors” and “A Practical Guide.” You can contact Bill directly and he will assist you and anyone else with setting up a plan. I do recommend purchasing Bill’s book for your reference, especially if you want to set things up yourself.Like I said, all of the resources you will need to set up a SEPP Plan are available on this website. If you have a simple plan then you should not have any problems, such as Ed has stated.I hope this extra information is useful and good luck with your plan.Jim2010-06-29 14:34, By: Jim, IP: [184.108.40.206]
I agree with Jim completely. Getting the book available on this web site is an excellent idea. I didn’t get it… but I should have! That would have saved me hundreds of hours worth of library and Internet searching. It is definitely the best bang / buck in SEPP / 72t planning.
As to having a simple SEPP… of course! The fewer moving parts one has in a plan, the less likely it is to have problems. This must, of course, be balanced against your personal needs and situation. If your goals can be met by a simpler plan, that is the course that I would advise. When a simple plan cannot meet your needs, that is the time to call in some professional help to create a plan that does meet them. I guess that the trick here is knowing when one crosses that line.
2010-06-29 21:14, By: Ed_B, IP: [220.127.116.11]
L3: 72THi Ed,
Would it be possible to email the Vanguard 20 page brochure to me.
2010-07-01 23:47, By: chris, IP: [18.104.22.168]
L4: 72TI usea major investment house and they made it very easy to set up a SEPP. They sent out a multiple page form booklet and based on info from them and info gained here, they set it up with initial calculations on interest lock-in date then did the final calc just before first payment and we have been chugging along for 3 years. They have answeredall questions, even in writing if requested. Have been a customer for 30 years.(BUT…am being examined by IRS because of 1099r coding; hope they do not draw the agony out much longer)2010-07-13 23:12, By: jb, IP: [22.214.171.124]
L5: 72TApparently the IRA custodian used Code 1 on the 1099R. Did you file Form 5329 to show the SEPP exception code of 02?2010-07-13 23:19, By: Alan S., IP: [126.96.36.199]
L6: 72Tyes. filed 5329 but must have raised a flag. it has been 5 weeks sincesendingletter detailing plan and extra supporting docs. to IRS. They said 4-6 weeks…..2010-07-14 01:37, By: jb, IP: [188.8.131.52]
Please e-mail a copy of the older and larger brochure to me at email@example.com.
Corporate Orphan2010-07-17 22:47, By: Corporate Orphan, IP: [184.108.40.206]
L3: 72tHi Ed,
Would like a copy of the older and larger Vanguard brochure.
Marco2010-07-19 23:28, By: Marco, IP: [220.127.116.11]
L3: 72TI will be getting help setting up my 72(t) but would like a copy of the 20 page Vanguard doc. Always good to have more info/knowledge. Could you e-mail it to firstname.lastname@example.org. Thanks!2010-07-21 17:09, By: Sylvia, IP: [18.104.22.168]
L3: 72THi Ed:
Please e-mail a copy of the older and larger brochure to me at email@example.com.
Diane2010-08-12 23:51, By: dihanna, IP: [22.214.171.124]
Please email to firstname.lastname@example.org older and larger Vanguard brochure.
Arun2010-08-19 21:08, By: Arun, IP: [126.96.36.199]
L3: 72TEd, your post gave me a lot of confidence. Can you email the 20 page brochure to me.
Appreciate your help. My email is email@example.com. Thank you, VJ2010-09-07 18:56, By: VJ, IP: [188.8.131.52]
L4: 72TOnly concern here is if Vanguard has pulled the 20 pages, there might be something in there that has either been superceded, or perhaps was incorrect. Depends on why they no longer consider it current.2010-09-08 01:02, By: Alan S., IP: [184.108.40.206]
L5: 72TIf you e-mail me a pdf of the 20-page booklet, I’ll review it, and compare it to the 5-page booklet. I’ve also requested info from Vanguard as to their reason for the change Simplicity, Tax Law changes, etc.
firstname.lastname@example.org 17:01, By: dlzallestaxes, IP: [220.127.116.11]