Changing the pay date of an existing monthly 72t distribution

L1: Changing the pay date of an existing monthly 72t distributionAn existing SEPP plan, date of first distribution was in 2010. currently receiving monthly payments on the 1st of every month. Would like to move the pay date of the distribution to the 27th of every month to insure the funds are deposited into the checking account by the 1st of the month. If the date is changed now will effectively provide one additional payment for the current year in turn altering the annual distribution for the one year. are there any private letter rulings acknowledging that the change is not a modification of payments but merely a date change?2012-03-01 18:27, By: Existing 72t, IP: [75.220.84.11]
L2: Changing the pay date of an existing monthly 72t distributionThere is no problem changing the dates of SEPP payments. You can even change the frequency during a year, or in different years.
HOWEVER, we NEVER recommend using any date near the end of a month. We suggest using a date no later than the 15th so that you have time for any correction to be made in DEC, if necessary.
You could use 27th of each month if you wanted, EXCEPT DEC, for reason above.2012-03-01 18:35, By: dlzallestaxes, IP: [96.227.217.194]

L3: Changing the pay date of an existing monthly 72t distributionthank you for the reply. What about the effect of the additional payment if the client received a payment on 1/1 of this year and will also receive a 13th payment on 12/27 of this year?2012-03-01 21:31, By: Existing 72t , IP: [12.47.232.15]

L3: Changing the pay date of an existing monthly 72t distributionWhat about changing an annual payment from March to July?2012-03-01 23:57, By: BB, IP: [108.20.26.2]

L2: Changing the pay date of an existing monthly 72t distributionAs DLZ stated, you can change your date as long as you annual distribution doesn’t exceed the calculated amount. The IRS doesn’t care when you get your money, they just see the total amount distributed on a 1099.2012-03-01 18:42, By: The Red Baron, IP: [70.12.178.149]

L3: Changing the pay date of an existing monthly 72t distributionthank you for the reply. What about the effect of the additional payment if the client received a payment on 1/1 of this year and will also receive a 13th payment on 12/27 of this year?2012-03-01 21:32, By: Existing 72t, IP: [12.47.232.15]

L4: Changing the pay date of an existing monthly 72t distributionThe number of payments makes no difference as long as the total of all payments received – be it 12, 13 or 113 – does not exceed the calculated annual amount.
Using the 27th means that there will be no time to correcterrors.
Suggest that he use the 15th of 20th of the month.
2012-03-01 21:37, By: gfw, IP: [205.178.73.77]

L5: Changing the pay date of an existing monthly 72t distributionI am not being clear…the distributions have been ongoing for about 20 months. If the monthly distributions remain the same amount, it sounds like the december distribution will have to be withheld and begin with the same monthly amount starting 1/27.2012-03-01 21:48, By: Existing 72t, IP: [12.47.232.15]

L6: Changing the pay date of an existing monthly 72t distributionAll calculations are annual – distributions can be annual, monthly, quarterly or even daily. The only amount that is important is the annual – between 1/1 and 12/31 he must take out the exact annual amount – no more and no less.2012-03-01 22:02, By: gfw, IP: [205.178.73.77]

L7: Changing the pay date of an existing monthly 72t distributionThank you for your help!2012-03-01 22:04, By: Existing 72t, IP: [12.47.232.15]

L8: Changing the pay date of an existing monthly 72t distributionLet’s approach this in a different way. First, the received date means nothing. The 1099R reflects the distribution date of the payment.
Therefore, check to see that the 2011 1099R shows the correct annual total distribution for 2011 and is the same as 2010 etc. If not, there is a big problem already.
Then verify with the custodian that the 1099R specifically includes the payment that was received on 1/1. If so, the number of payments distributed so far in 2012 will be evident. Using that information, change the remaining payments and the payment date away from this troublesome month end distribution date such that the 2012 1099R will also match the previous 1099R.
This is a great example of why we always recommend thatdistribution dates be set up to avoid the last few days of each month. Time to make corrections through rollbacks or additional distributionsin December is another reason that haspreviously been pointed out.2012-03-01 23:57, By: Alan S, IP: [24.116.67.233]

L9: Changing the pay date of an existing monthly 72t distributionExisting 72T,
It sounds like you want to make a change that will give you13 “monthly” payments this year, (so in a specific month, you are paid on the 1st, and then paid again on the 27thto fix your “cash availability”problem) instead of telling the custodian to delay the next SEPP payment from the 1st to the 27th, and then keep doing all payments on the 27th, which is the right way to fix this, but I assume it will make your cash flow worse initially. If you do that (13 pmnts of same amount you usually get per month) you bust the SEPP plan this year.2012-03-02 04:22, By: Ken, IP: [24.63.124.114]