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Commence Distributions

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ByJohnnyG

L1: Commence DistributionsWith the Feb posted rate at 3.39% can I commence taking a distribution 1 March 2010 using 3.39%?Many thanks2010-01-20 16:53, By: johnnyg, IP: [66.232.90.254]
L2: Commence DistributionsYou can use the FEB ’10 rate for either a SEPP plan with a March 2010 or April 2010 firstpayment, but I would caution against using 1st of the month as your payment date, as the March 1st payment could accidently be issued on 2/28, and that would not work. It also can cause year end payment problems if it is “rolled back” (by the custodian) into a 2nd December payment, due to 1/1/YY being a holiday, and in the case of 1/1/10, 1/1/10 was a holiday, and 1/2/10 and 1/3/10 were non banking days, so some people go their 1st of the month payments on 12/31/09, and if it is added to your 1099-R for that year, it might be another problem. Ask for 4th or 5th of month to be safe. Ken2010-01-20 17:45, By: Ken, IP: [71.192.120.143]

L3: Commence DistributionsKen, Many thanks for the good information. I cannot thank Gordon and all of you who have offered answers during my last three years on this site planning my future distributions. As a result I am positioned to receive these early distributions for the next 9 years which makes my very early retirement possible. THANKS AGAIN.2010-01-20 18:17, By: johnnyg, IP: [66.232.90.254]

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