Are contributions to separate IRA”s restricted

L1: Are contributions to separate IRA”s restricted I am taking early retirement in the next few months and plan to set up a SEPP based on the retirement income plan and company savings plan amounts that I will be due on separation from service. I have a separate much smaller IRA that I was planning on leaving out of the SEPP calculations. Can I continue to make any contributions to that separate IRA if my only income is from the SEPP?2004-02-24 02:20, By: Wally, IP: [12.151.162.22]
L2: Are contributions to separate IRA””””sContributions to the separate IRA would not affect your SEPP calculation. However, you will need earned income to make a contribution to the separate IRA. Income from the SEPP would not qualify.2004-02-24 06:01, By: Gary, IP: [172.16.7.101]

L2: Are contributions to separate IRA””s restricDo you plan on keeping all of your company Qualified Plans (401K, Pension, etc) in place or will you do a complete or partialmove to a new IRA Rollover account separate from your ‘smaller IRA?’ This is not clear in your description.
Keeping an IRA separate from the accounts you use for your SEPP is an excellent idea. It will act as an ‘escape valve’ source of funds if you need extra funds over and above the SEPP payments. You may have to pay the 10% penalty and ordinary taxes on distributions, but it will preserve your SEPP and avoid more penalties and headaches if you have to ‘bust’ the SEPP for extra funds.
Gary is right that you can continue to fund the smaller IRA, IF you have ‘earned income’ upon which to base your contributions. That means you have to work and earn income. It can’t be from retirement plans or Social Security.But you don’t have to work for someone else … you can be self employed and qualify.
Enjoy retirement and good luck.
Jim2004-02-24 11:28, By: Jim, IP: [68.1.147.61]

L2: Are contributions to separate IRA””s restricI have a Retirement Income Plan that is fully funded by my employerthat I have numerous options on what to do with upon retiring. I can take various annuities, roll-over a lumpsum distribution into a newor existing IRA, or I can transfer the lump-sumdistribution into my 401K plan (also managed by the same company as my Retirement Income Plan). I plan to do the last option, which will allow me to invest it among the nine different funds that are in the 401K plan. This does raise another question though, regarding timing. Does this transfer between theplans have any effect on what statements I use to do the SEPP calculation? I expect to do the transfer before I get my first SEPP distribution. Can I use the value based on the value of the separate plans between Dec. 31, 2003 and the date of the SEPP distribution or must it be calculated based on the combined value after it is in a single plan?
My separate IRA is much smaller and I wanted toretain some flexibility by keeping it out of the SEPP. Thanks for the reply regarding that. I expected that SEPP funds could not be reinvested in an IRA. I will likely have some separate income (real estate sales)that can be used to make contributions to that IRA with.2004-02-25 03:01, By: Wally, IP: [12.151.162.25]

L2: Are contributions to separate IRA”s restricYou should be able to use either – just make sure that you create a paper trail that outlines whaty you are doing and the source of the funds that you will be using.
Make sure that you also check with your employer and that the administrator will be willing to make the distributions.
2004-02-25 10:01, By: Gfw, IP: [172.16.7.101]