Hi, my birthdate is 8/16/1957, I was going to start my SEPP payments on 10/15/11. If the SEPP calculator showed $24,000 annual withdrawals, I was going to take $8000 on 10/15/11, $8k on 11/15/11, and $8K on 12/15/11 for my first year.
Could I then take $24K per year, either monthy or annually, as long as I take the $24K ?
And would I have to take the full $24K in 2017 year as well?
2011-10-04 00:46, By: Kat, IP: [126.96.36.199]
Yes, you can take 24k per year after your first year regardless of how you split those distributions up each year. The critical part is that your calendar year distribution equal the 24k. I would be wary of taking the full amount
out early in the year unless you are very disciplined at budgeting the expenditures.
Your modification date is based on age 59.5 in Feb, 2017. In calendar year 2017 prior to the Feb modification date you have a choice:
1) Take nothing
2) Take out the 1/12 of your annual amount for the month of January
3) Take out the full 24k
After the 2017 modification date you can take out any amount you wish or nothing.
2011-10-04 02:04, By: Alan S., IP: [188.8.131.52]
You have to take distributions for the LONGER of 60 months or to age 59 1/2. Your starting date would be 10/15/2011. 5 years/60 months would be until 10/15/2016. At that time you will be 59 years and 2 months. You will not be 59 1/2 years until 2/16/2017.
Since you will have taken payments equal to 5 annual amounts (starting with 2011 by taking it all over the last 3 months), you will have satisfied that requirement. However, your plan will not terminate until you are 59 1/2 on 2/16/2017.
In 2017, you can take $ 4,000 (2/12 of $ 24,000) or $ 24,000 before 2/15/2017, or take -0- during that period. I suggest waiting until 3/1/2017 if you take an amount other than $ 4,000 or $ 24,000. After 3/1/2017 you can take any amount, or -0-, because
your SEPP 72-T plan will be over.
2011-10-04 02:09, By: dlzallestaxes, IP: [184.108.40.206]