Additional IRA distribution alongside a SEPP?

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L1: Additional IRA distribution alongside a SEPP?Is itpossible for a cleint to take a pre 59 1/2 IRA distribution when they are cureently excercising their ESPP under 72(t) with a different qualified account? will the additional IRA distribution interfere with the 72(t)??2006-09-12 13:06, By: Lakelassy, IP: [208.249.67.130]
L2: Additional IRA distribution alongside a SEPP?Hello Lakelassy:
It is perfectly acceptable to take an early (qualified or non-qualified) distribtion from another IRA account while simultaneously continuing SEPP distribtions from the original account. In all likelihood, the taxpayer would then receive 2 1099R”s and similarly would need to file 2 Form 5329”s on the presumption that both distributions were qualified; one for the SEPP distribution and one for some other qualified reason.
What is not permitted is to make an extra distribution of any kind from the same account as the SEPP distributions. This will cause a modification effectively “busting” the SEPP plan.
TheBadger
wjstecker@wispertel.net
2006-09-12 17:37, By: TheBadger, IP: [72.42.67.50]