72t SEPP Payment Dates
L1: 72t SEPP Payment DatesI starteda new 72t SEPP on 10/1/16 and received the years payment that day. I checked a box when indicating “Calendar Year” distribution measuring period as opposed to “Rolling Calendar Year”. Don’t think its needed but born in Dec. 1959, so 56 at time of first distribution.
Based on that, would I be able to withdraw the full amount any time in 2017, like in February, or am I limited to keeping the October date or switching to some other payment method? Just hoping to clarify before I plan for future distributions. Appreciate the assistance!2016-11-18 01:09, By: rhseppp, IP: [188.8.131.52]
L2: 72t SEPP Payment DatesThe payment may occur anytime during the year. Just be mindful that based on your first distribution date of 10/1/16, you have to go a full 5 years (last day of the 5th year) from that date before you can modify the distribution amount. 2016-11-18 01:40, By: Gfw, IP: [184.108.40.206]
L3: 72t SEPP Payment Dates
This being a five year plan, won’t he need to wait until after Dec. 31, 2020 before he can take any more distributions? Or is that what you mean by the “last day of the fifth year”?
2016-11-18 14:32, By: Red Baron, IP: [220.127.116.11]
L4: 72t SEPP Payment DatesDuring the 5 years, he must take 5 times the calculated annual distribution amount – no more and no less. Based on a start date of 10/01/2016, the 1st modification date would be 10/2/2021 – after that date he can take any amount.2016-11-18 15:03, By: Gfw, IP: [18.104.22.168]
L5: 72t SEPP Payment DatesSo he can only take full year distributions in 16, 17, 18, 19 and 20. In the year 2021 he must wait until 10/2/2021 or he will break the SEPP. Had he taken a 3 month pro rated in 2016 he could have taken 9 months in 2021.2016-11-18 15:44, By: Scott, IP: [22.214.171.124]
L6: 72t SEPP Payment DatesCorrect.2016-11-18 18:48, By: Gfw, IP: [126.96.36.199]
L2: 72t SEPP Payment DatesYour 2017 distributions can be made using any distribution pattern you wish regardless of what you did in 2016. You could take the full distribution in January if you wanted to, since you have to budget your spending for the entire year whether you take your distribution up front or spread throughout the year. Some people however will spend more if they have the cash in their bank account. The only consideration that is vital is that your 1099R total distribution amount is exactly equal to your calendar year calculation. Also, if you want taxes withheld be aware that the gross distribution is the critical figure, not what you see after taxes.2016-11-18 01:45, By: Alan S, IP: [188.8.131.52]