72T – change from annual to monthly

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L1: 72T – change from annual to monthlyAn individual, age 55 (DOB = 7-15-1952), wants to establish a SEPP as of November 1, 2007, and take the annual payment immediately. Next they want to change to monthly and begin receiving payments as of January 1, 2008. Can this be done without triggering the penalty?
May a decision be made for eachcalendar year that a payment is to be made for as to what the frequency is? Annual for 2007 (even if started on December 31), switch to monthly come January 2008, then to quarterly for 2009, etc…2007-11-06 08:27, By: Joe, IP: [151.209.112.137]

L2: 72T – change from annual to monthlyDefinitely. The only requirements involve the ANNUALtotal distributions, except for an alternative in the first calendar year. You can either take a prorated distribution of the number of months from your 1st distribution to 12/31 ( i.e. Nov = 2/12) times the calculated annual amount, OR you can take the full annual amount even if you start the SEPP 72-T in December. If you really need a lot of money quickly near year-end, you could take the full annual amount in Nov or Dec, AND take the 2008 annual amount again in January, but then you cannot take another payment until Jan. 2009.
The frequency and amounts of payments within a calendar year are immaterial, so long as the annual total is the correct same amount each year.2007-11-06 10:03, By: dlzallestaxes, IP: [151.197.173.92]