Distribution modification date

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L1: Distribution modification dateJust to be sure: If I am born 12/6/56; and I start my SEPP plan in January 2011, and I take my annual distributions each January, I have taken my fifth year in January of 2015 or the 49th month. I can’t end the plan until 6/7/2016, so does that mean I can take no distribution in 2016? Or if I want to take a distribution in 2016, I can take any amount I want, waiting until after I am 59 1/2 to avoid penalty? I can ignore taking a withdrawal in January of 2016, correct?Thanks.2010-09-24 02:46, By: Nick, IP: []
L2: Distribution modification dateCorrect. 2016 is your final stub year and you will enter it having taken out 60 months worth of distributions.
Therefore, your options between 1/1/2016 and 6/7/2016 are:
1) Do not take a distribution at all or
2) Take out 5 months worth or
3) Take out 12 months worth
After your modification date, you are free to distribute any amount or nothing. If you distribute during the plan you will get a 1099R coded either 1 or 2 (probably 1), and if you take a distribution after the modification date you will get another 1099R coded 7.2010-09-24 03:30, By: Alan S., IP: []

L3: Distribution modification dateHi Alan: Would you please explain what is the difference between 1099R code 1 or 2?
Thanks.2010-09-24 13:02, By: rosa, IP: []

L4: Distribution modification dateLook on page 12 of the instructionshttp://www.irs.gov/pub/irs-pdf/i1099r.pdfall of the possible codes are listed.2010-09-24 13:29, By: Gfw, IP: []

L5: Distribution modification dateI’m amazed how people get so hung up on such an unimportant issue as whether the code is a 1 or a 2. All tax software prepares the 5329 almost automatically, and it never causes an issue with the IRS or even aletter oran audit.2010-09-24 14:01, By: dlzallestaxes, IP: []