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L1: ageI am 47 now (feb9, 2011)and turn 48 in Sept. 2011. If I start a sepp now what age do I use as the life expectancy age, my age now (47) or the age I turn in the year the plan started (48).2011-02-09 20:05, By: slim, IP: []
L2: ageIf you start your plan at anytime in2011, you will use you age as of 12-31-2011. In your case you would use 48 even if you start the SEPP before September.2011-02-09 20:46, By: meb24, IP: []

L3: ageLet me “tag” some names tothis issue of “age” which you’ll need to know for now and in the future.Attained Age: Your age on 12-31 of any year. So in your case your Attained Age in 2011 is 48; the age you use to start your SEPP Plan. In the future you will use Attained Age when you begin taking mandatory distributions after age 70 1/2 to calculate the Required Minimum Distribution. You would also use it if you started taking SEPP distributions under either the Amortization or Annuitization methods, then later changed to the Minimum Distribution Method. Attained Age is used in calculating the RMD dollar amount.Actual Age: As you might expect this is your real age on any particular day in any year. In the world of SEPP Plans, this is the age afterwhich your distributions are “penalty free,” assuming you have completed your 5-year’s of distributions requirement. Also, IRA custodians should … some do some don’t … automatically begin coding distributions as “Normal” or “Code 7” after you reach youractual age of 59 1/2.Jim2011-02-09 21:07, By: Jim, IP: []

L4: ageI would add that undertaking a 12 year SEPP requires very detailed projections regardless of whether you have the padding of additional IRA accounts or even other non retirement income outside your SEPP, or the more hazardous situation where your SEPP must include all your IRA assets just to generate enough cash flow for the first few years. Inflation projections should be made using conservative assumptions, ie a minimum of 5% per year given the current actions of the fed. If it becomes obvious that you will not make it, busting the SEPP early may be wise to save a larger penalty later loaded with interest. Keep in mind, if you want to reduce your payout, you can make a one time switch to the RMD method, but there is no way to increase the payout unless you have additional retirement accounts with which you can start a additional plan(s) at later dates. And if you don’t bust your plan first, if the IRA runs out of money, you don’t have a busted plan, just one that automatically terminates without penalty. But that’s not much comfort.I did not mention the recalc method which carries the risk of ution and calculation errors, but if you are very detailed and/or have access to the necessary advice and cross checks,recalc could result in increased payouts once the inevitable interest rate increases hit home. But we normally do not recommend it’s use.2011-02-10 00:22, By: Alan S., IP: []