L1: Calculating SEPP
After calculating the SEPP payment for a New SEPP that is to begin in November, do I have to use the
exact dollar amount as calculated or can the amount be up to the amount calculated and not exceeding it? Birthdate is December 1965
2018-10-04 19:28, By: Robert, IP: [18.104.22.168]
L2: Calculating SEPP
It can be up to but not exceeding that maximum amount. Effectively, you are selecting a lower interest rate, which is allowed; the lower interest rate gives a lower annual payout. Since you can pick any interest rate from 0% to the maximum allowed for the month of first withdrawal, you can pick any annual amount from $0 to that corresponding to the maximum.
2018-10-05 05:39, By: sm69, IP: [2600:6c52:6200:832:9884:f76c:292b:55cc]
L3: Calculating SEPP
BUT, remember that this calculation of this lower amount for 2018 will also lock you in until you are 59 1/2.
You should consider using the figure that you will need in FUTURE years. For 2018 you are allowed to take a prorated portion of the annual total. If you want to minimize the 2018 distribution, you could take 2/12 if your first distribution is in Nov., or 1/12 if it is in Dec.
You could also defer starting until Jan 2019.
You could also set up one SEPP now, and take a full annual distribution on that account. And also set up a 2nd SEPP, and take a prorated distribution in 2018, or start it it 2019.
If you give us all of the applicable information, and your reasoning for taking less than the maximum, we might be able to give you a more specific suggested approach.
2018-10-05 14:50, By: dlzallestaxes, IP: [22.214.171.124]