Annual Distribution Terminology

You are here:
< Back

L1: Annual Distribution Terminologythinksome of myconfusion is in the terminology used. My understanding is that the term annual distribution refers to a 12 month time period [e.g., April 03 – Mar 04] and not a Jan – Dec calendar time period. Is this understanding correct?
Thanks, Roger2003-03-13 09:04, By: Roger, IP: [127.0.0.1]

L2: Annual Distribution TerminologyHello Roger:
Short answer — NO.
See my reply to the previous post.
TheBadger
wjstecker@wispertel.net
2003-03-13 09:23, By: TheBadger, IP: [127.0.0.1]

L2: Annual Distribution TerminologyI have read the previous post and didn”t see a reply to his first question.
If I start my SEPP in April “03 and decide to take, e.g., a $1,000 per month or $12,000annually, do I have to take the full $12,000 by the end of of Dec 03 or do I have until Mar 04 to take the full $12,0000?
Thanks, Roger2003-03-13 10:26, By: Roger, IP: [127.0.0.1]

L2: Annual Distribution TerminologySee my response #4 to the previous post. You have a variety of options for the calendar year only; one of them is not to wait until April of the next year to take all $12K
Thebadger
wjstecker@wispertel.net
2003-03-13 11:11, By: TheBadger, IP: [127.0.0.1]

L2: Annual Distribution TerminologyThanks for the information. Sorry for not catching the additional posts to Dave”s post.
I think I understand the first stub year and in between years, but I”m not sure about the last stub year if you take the full ADA in the 1st stub year [take all $12K in 03]. So I thought I would give several examples to help me sort this out; please respond to each case:
1) If Istart my SEPP Plan in April 03 [I”ll be 59 1/2 in March 08so I only need tomeet the 5 year rule] for a $1K per month distribution [$12K per year], Ican take $1K every month for 60 months with the 1st stub year”s 2003 1099-R = $9K, 2nd-5th year”s 2004-2007 1099-R = $12K, and the last stub year”s 2008 1099-R = $3K for $12K x 5 years = $60K.
2) If Istart my SEPP Plan in April 03 [I”ll be 59 1/2 in March 08so I only need tomeet the 5 year rule] for a $1K per month distribution [$12K per year], Ican take $12K for the 1st stub year”s 2003 1099-R = $12K, 2nd-5th year”s 2004-2007 1099-R = $12K, and the last stub year”s 2008 1099-R = $0K as the full $60Kfor the5 years has been met in years 2003-2007 1099-Rs.
Thanks, Roger2003-03-13 12:01, By: Roger, IP: [127.0.0.1]

L2: Annual Distribution Terminology1) If Istart my SEPP Plan in April 03 [I”ll be 59 1/2 in March 08so I only need tomeet the 5 year rule] for a $1K per month distribution [$12K per year], Ican take $1K every month for 60 months with the 1st stub year”s 2003 1099-R = $9K, 2nd-5th year”s 2004-2007 1099-R = $12K, and the last stub year”s 2008 1099-R = $3K for $12K x 5 years = $60K.

Correct.
2) If Istart my SEPP Plan in April 03 [I”ll be 59 1/2 in March 08so I only need tomeet the 5 year rule] for a $1K per month distribution [$12K per year], Ican take $12K for the 1st stub year”s 2003 1099-R = $12K, 2nd-5th year”s 2004-2007 1099-R = $12K, and the last stub year”s 2008 1099-R = $0K as the full $60Kfor the5 years has been met in years 2003-2007 1099-Rs.
Also correct. Further, under #2, you MAY NOT take any other distribution between 1/1/08 & 3/31/08 as it would be counted as an additional distribution causing a modification.
TheBadger
wjstecker@wispertel.net

2003-03-13 12:31, By: TheBadger, IP: [127.0.0.1]

L2: Annual Distribution TerminologyThis clears this up completely….thanks for your time……Roger2003-03-13 13:55, By: Roger, IP: [127.0.0.1]