date 72t starts
L1: date 72t startsI want to start this month , yet money wont be available till 4/30/14 . Do I need to do a wire transfer to make sure it gets to my bank account on 4/30/14 ? Is a ETN bank to bank ok as long as fidelity pulls the money out of my account on 4/30/14 ?Which is correct wire transfers cost more., also it has to happen every year on that same day until 59.5 or every month IE apr 14 , apr 15 ect. thanks in advance2014-04-28 17:45, By: draggen3, IP: [188.8.131.52]
L2: date 72t startsWhy is 4/30/2014 so critical as a start date ? So you get exactly 9 monthly payments or the equivalent ? If you need more than 8 months’ worth, is taking the full annual amount not advisable in your situation. If that isn’t a problem, then I would wait until May, and take either 8 months’ worth (and it doesn’t have to be monthly) or the full annual amount without forcing time pressures which will usually get done wrong.
You do not have to take any future distributions on the same day of the month or annual anniversary. We always recommend that no one get monthly distributions after the 15th or 20th because you need time to correct any error in the Dec distribution.2014-04-28 18:08, By: dlzallestaxes, IP: [184.108.40.206]
L3: date 72t startsIm taking the full amount for year in apr of 14 because interest rates will go back down in a correction .I was not going to do monthly I was going to do yearly distrubutions . 2.36 % for 72t acct that start in apr of 14 june will be 2.31 % 2014-04-28 18:13, By: draggen3, IP: [220.127.116.11]
L3: date 72t starts
Why do you say dec distribution when if I take full amount every apr of each year till 59.5 . I thought I understood all of this kinda made me think twice about that . I understand now its because thats monthly Im doing yearly.
why do you say yearly not adviseable ????? thxs in advance2014-04-28 18:22, By: draggen3, IP: [18.104.22.168]
L4: date 72t startsYou have to have very strong controls never to run out of money for 12 months after you take every annual distribution until you are 59 1/2. Just one slip up before you are 59 1/2 will cost your dearly.
In addition, we usually suggest setting up 2 or 3 separate accounts, and leaving some emergency money in a regular IRA, not a SEPP, in case you need it at any time in the future.
How much is in your IRAs that .05% will make enough of an annual difference that you have to rush to maximize your distribution in the next couple of days ?
Most people set up SEPP 72-T plans because they NEED additional money, which often is because they were not good managers before now. If so, then they will almost certainly not be able to handle their finances properly when they get a year’s worth of funds at the beginning of each year. You might want to consider taking your money in May (3 mos.) and August ( mos.), and see how you handle that. If ok, then take another 3 mos. in Nov. If things get tight in Dec, you can always take the other 3 months’ worth in Dec. On the other hand, starting in 2015 you could start taking it monthly after the Feb distribution.
( I’ve seen conflicting guidance on whether “annual” distributions might be calculated for 12 months, rather than the calendar year. gfw or Alan might clarify that so you wait until the right month in 2015 to change frequency if “annual” means 12 months.)2014-04-28 19:51, By: dlzallestaxes, IP: [22.214.171.124]
L2: date 72t startsThe start date of the SEPP is the date the 1st distribution check is sent to you, not when the funds are transferred. If they don’t get the distribution check out until May, the effective date and interest rate would be based on May if that’s whhen they send the check.2014-04-28 18:32, By: Gfw, IP: [126.96.36.199]
L3: date 72t startsThanks ill wire transfer it , but next year it just has to be in apr of 15 or on the same exact day I got this one ?2014-04-28 19:39, By: draggen3, IP: [188.8.131.52]
L4: date 72t startsNO. Where on this website did you get that information ?2014-04-28 19:53, By: dlzallestaxes, IP: [184.108.40.206]
L4: date 72t startsYou keep talking about a transfer… what account is it being transferred to? Hopefully to your personal checking or money market an not to another IRA.2014-04-28 20:39, By: Gfw, IP: [220.127.116.11]
L5: date 72t startsFirst, give us your date of birth? 2nd, you can take your annual distribution anytime during the year, quarterly, or monthly amounts as long as all distributions equal the annual. Your first distribution will determine the interest rate used as you apparently know. However, we need the DOB to determine the type of plan you’ll have.
You could take a partial distribution first, and then make up the rest once you see the documented date on the fidelity website.
DLZ, not everyone needs monthly distributions. People that need someone else to figure out their SEPP probably do!2014-04-28 21:15, By: Scott, IP: [18.104.22.168]
L5: date 72t starts1st of all thxs for trying to look out for me. I have the figure right Ive went over them time and time again talked to fidelity agent thats does these all the time he answer most of my questions . Going to a checking act from a IRA with fidelity , Im going to wire xfer the 1st one then next year Ill take another distrubtion in late Apr of 15 . I have my wife 401k for emergency and she is 59.5.
I think taxes are going up so i want to be taxed on it now !!2014-04-28 21:17, By: draggen3, IP: [22.214.171.124]