a couple of questions

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L1: a couple of questionsHello, I have a couple of questions. My IRA which I will use for the SEPP is at Schwab. When I request my distribution for the sepp, theygive me a choice whether theamount entered ( which I have carefully calculated) should be before tax, or after tax. I believe the calculated amount I enter should be BEFORE tax, and then allow them to withhold tax at my current tax rate. Is this correct???Second question, can you do a sepp from your IRA, AND a withdrawal from a 401K in the same year? I believe these are totally different types of transactions. Thank you so much.2009-01-20 20:41, By: First-timer, IP: [76.30.75.188]
L2: a couple of questionsSchwab needs to be careful in framing this question. You are correct that you should be dealing with before tax amounts only. To avoid the entire issue, it may be safer to pay your taxes with quarterly estimates, but if you still want withholding, just give Schwab the gross distribution to meet your calculations, and then tell them to withhold x% of that gross distribution for taxes.Your 401k withdrawal will not affect your SEPP plan at all. The 401k withdrawal may be subject to penalty or you may have a separate exception from penalty to waive the penalty on that. If you separated in the year your turned 55 or later, then there should be no penalty on 401k distributions from that particular plan, but if you qualified for that waiver, you may not have even needed the SEPP, and may have been able to take your distributions directly from the 401k until age 59.5.2009-01-20 22:48, By: Alan S., IP: [24.116.165.60]