Distributions after 59 1/2

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L1: Distributions after 59 1/2 I took my first SEPP distribution on Nov.1,2003. I’ll be 59 1/2 on May 11,2011. My ‘Investment Advisor’, the person who set up my 72t plan, says I won’t be able to change the distribution amount until Jan.1,2012, in other words in the year after I turn 59 1/2.I was counting on reducing the amount on June 1,2011. Who’s right?2010-05-05 19:46, By: Monte, IP: []
L2: Distributions after 59 1/2You are correct. As of 59 1/2 your SEPP 72-T plan terminates because you would have been in the plan 5 years.Unless he’s an extraordinary investment advisor, transfer your account(s) to another broker between now and next May.2010-05-05 20:00, By: dlzallestaxes, IP: []

L2: Distributions after 59 1/2Not only can you stop your distributions with the April, 2011 distribution, you do NOT have to take any distributions in 2011 if you do not want to. 2011 is referred to as your final stub year, and you will already have long since completed your 5 years of distributions. It sounds like you would prefer to take out as little as possible.Here are your 2011 options up to 5/11:1) Take out nothing2) Take out 4 months worth3) Take out a full year’s worthOf course, after 5/11 you can take out whatever you please or nothing.If you want to reduce your payouts, unless you have taken out more than 4 months so far this year, you could probably make the one time switch to the MD method for 2010, and that usually results in a sizeable reduction in your annual distribution. And if you do this, it does not affect the options for 2011 listed above. You would just have to apply those options to the MD method and the 2011 calculation.2010-05-06 00:12, By: Alan S., IP: []