72T last distribution

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L1: 72T last distributionI plan to begin a 72t in January 2008 with annual distribtuions and I will turn 59.5 in May 2013. The final fifth distribution year is in 2013, sowill I need to take the fifth year sepp distribution prior to any elective distributions after I am 59.5 in 2013?
Thanks, Bob2007-11-27 11:22, By: car-tows, IP: [72.86.12.216]

L2: 72T last distributionNo.
2008 = year 1
2009 = year 2
2010= year 3
2011 = year 4
2012 = year 5
Your SEPP 72-T “ends” as of the later of age 59 1/2 or 5 years after the plan starts, which would be Jan. 2013.
Even if you take monthly or quarterly distributions in 2008 thru 2012, you do not have to take any distributions in 2013 before you reach 59 1/2. Once you reach 59 1/2 in May, you do not have to take any distribution after reaching 59 1/2 (until you are 70 1/2), or you can take ANY AMOUNT after reaching 59 1/2 from -0- to the full balance in your IRAs.2007-11-27 11:43, By: dlzallestaxes, IP: [141.151.16.108]

L2: 72T last distributionI think DZL may have misspoke on the subject of when your SEPP ends. The date certain for the end of your SEPP is the later of either 5 yrs of withdrawals, or reaching 59 1/2, and you reach 59 1/2 in May 2013, which is the later of the two dates. I also think you need to take a distribution in 2013, and I believe it can be a partial (5 month $ VALUE ) distribution if you choose IN 2013, and then after May 2013, you can start taking “post SEPP” withdrawals without penalty. I may be wrong on the SEPP distribution that is needed for 2013, but I amcertain that you cannot start post SEPP withdrawals until after reaching 59 1/2 in May 2013.KEN2007-11-27 12:10, By: Ken, IP: [75.67.65.254]

L2: 72T last distributionMy wording could have been clearer. I meant that 5 years after the plan started would be Jan. 2013, which is obviously before reaching 59 1/2. Therefore, the SEPP 72-T plan ends at May 2013.2007-11-27 12:42, By: dlzallestaxes, IP: [141.151.16.108]

L2: 72T last distributionThanks for your replies. One more question, I plan to use the Nov 5.28% rate in January, is that OK?2007-11-27 12:52, By: car-tows, IP: [72.86.12.216]

L2: 72T last distributionYes, the Nov rate can be used for Dec or January plan inception.2007-11-27 21:02, By: Alan S., IP: [24.116.165.60]

L2: 72T last distributionI mentioned that I was finishing my SEPPwithdrawal next May [5/08] to my Fidelity fixed income rep and he said he heard that that there is somequestioning from the IRSas to whether I can stop it with my May withdrawal or that I mayneed to finish thru the full year [ie all of ”08].
Has anyone heard of this?2007-12-08 08:15, By: Roger, IP: [69.134.161.154]

L2: 72T last distributionAsk the Fidelity rep to give you documentation of the IRS issue he mentioned. Then tell him you want a letter from Fidelity”s legal department on this issue. Then tell him you would like to meet with him and his manager to discuss this matter further so that you can be sure that you do things properly.
Then watch him squirm and deny that he said it. Then he”ll tell you thatyou misunderstood what he said.
He might have been confused with the other issue that has appeared on this forum about “partial” rollovers or transfers to another trustee.
By the way, you really confused everyone by starting a new topic within someone else”s posting. Everyone should start new postings with new topics. In thsi case it appeared as if the original 5/2013 suddenly became 5/2008 at the final distribution, until I checked that your name was different from the original poster.2007-12-08 18:40, By: dlzallestaxes, IP: [141.152.255.12]