Can a SEPP follow a penalty withdrawal?

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L1: Can a SEPP follow a penalty withdrawal?I believe Interest rates are headed up. So, I think my SEPP Payments may also go up if I hold off. But I need the money now to pay off debt. Would it be possible to take a $100k withdrawal, paying the taxes and penalties in 2010, and then later (maybe even later in the same year?) establish a SEPP for the remaining balance in the IRA? According to the IRS, this seems doable, but I’d really rather not mess this one up! Thanks in advance!2010-03-30 15:53, By: Tim, IP: []
L2: Can a SEPP follow a penalty withdrawal?Short answer …Yes.You’ll probably receive one Form 1099-R reflecting the total distribution for the yearand Code 1, thenyou will have to sort out the penalty from the non-penalty amounts on IRS Form 5329. Use this link to see Form 5329: the four (4) lines in Part 1 and you will see how simple it will be to report.Jim2010-03-30 19:10, By: Jim, IP: []

L3: Can a SEPP follow a penalty withdrawal?Tim,
Are you saying that you currently have a SEPP plan in effect right now? If so, taking that $100k distribution WILL bust the plan and result in the payment of taxes and perhaps penalties and interest on ALL amounts distributed so far under the current SEPP. If your SEPP has only been running for a short time, then the resulting penalties may be small enough to be acceptable to you. If it has been running for a few years, then the taxes and penalties could be significant and you might want to rethink this option.
As Jim suggests, starting a new SEPP (after busting the current one) at any time should not be a problem.2010-03-31 17:43, By: Ed_B, IP: []

L4: Can a SEPP follow a penalty withdrawal?Jim/Ed – thanks so much for the help! I see that I was a little confusing about whether I had a SEPP in place currently. I do not. I’ve been holding off for the Investments AND interest rates to rise enough to fund a decent SEPP.In either case, you have addressed my questionfully. Thanks!!2010-03-31 18:13, By: Tim, IP: []