Changing day of monthly withdrawal

You are here:
  • KB Home
  • Changing day of monthly withdrawal
< Back

L1: Changing day of monthly withdrawalI just started my monthly SEPP last year and have taken 4 payments so far on the 15th of each month: November 15th, Dec. 15th, January 15, and February 15th.I would like to change the monthly withdrawal to the 1st of each month starting March 1st. Is this allowed?Thank you.2011-02-15 20:19, By: Bob, IP: []
L2: Changing day of monthly withdrawalYou can take the distributions whenever you want as long as between January 1 and December 31, you have taken out the annual amount – no more and no less.2011-02-15 20:44, By: Gfw, IP: []

L2: Changing day of monthly withdrawalYou can, but I would be very careful using the 1st. Since January 1 is a holiday you might receive 13 monthly payments this year if your plans policy is to make payment the day before if the payment date falls on a holiday and/or weekend. ??Just my opinion2011-02-15 20:50, By: meb24, IP: []

L3: Changing day of monthly withdrawalBy getting a 13th payment in the same calendar year, even though it is for the following January :
1. You would bust your plan
2. Be subject to income tax in a year sooner than expected
3. Be subject to a 10% penalty RETROACTIVELY on all distributions cumulatively since the plan was started. Imagine this cost if it happened after 4+ years.
If you want your money sooner than the 15th, the change it to the 5th of each month, and you should be safe.

2011-02-15 23:07, By: dlzallestaxes, IP: []