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L1: account balanceDuringthe execution of a5 yearamortization SEPP plan, is it acceptablefrom time-to-time towithdraw funds from the IRA account the SEPP plan uses without depleting the same account, nevering withdrawing additional non-sepp fundsless than amount needed to satisfy remaining 5 year SEPP balance. The SEPPdistribution amount does not change.The additional periodicwithdrawals would be taxed an additional 10% before 59.5.The withdrawal is neither a rollever or transfer. If the account is not depleted, and the 10% penalty is paid on the periodic non-seppwithdrawals as required,and sepp amount remainsunchanged thrufull 5 years, there is no breakage hence no adverse IRS action. CORRECT?2009-09-14 06:56, By: phk, IP: []
L2: account balance>>there is no breakage hence no adverse IRS action. CORRECT?Wrong. Any withdrawals taken from the SEPP account that are not part of the planned SEPP disrtribution would immediately bust the plan. Any funds added to the SEPP account would also immediately bust the plan.2009-09-14 10:25, By: Gfw, IP: []