L1: DividendsAre dividends paid on investments in a traditional IRA considered a contribution that would bust a 72t SEPP?2017-05-13 16:42, By: crj, IP: [18.104.22.168]
L2: DividendsNO. All IRA accounts, including SEPP’s, have income on an on-going basis, whether as interest or dividends. They also have capital gains or losses as investments are sold, and capital gain dividends paid by mutual funds. Also, the value of the investments change. Regardless, if you elect the usual method, the annual distributions will be the same, and you can make distributions out of any way that you have cash, or a combination of securities (i.e. “in kind”) and cash. However, do not try to distribute the exact annual distribution in securities, because there is no way to determine the exact value when distributed, and you do not want to take a chance that too much will be distributed, which would “bust” the plan.2017-05-13 17:00, By: dlzallestaxes, IP: [22.214.171.124]
L2: DividendsNope. I set up my 72t last year to just pull my dividends.2017-05-16 04:35, By: brkr12002, IP: [126.96.36.199]
L3: Dividendsbrkr12002… VeryInteresting… are you saying that your annual dividends are exactly equal to your calculated annual SEPP distribution?2017-05-17 10:19, By: Gfw, IP: [188.8.131.52]
L4: DividendsActually annual dividends are a little less than the annual SEPP distribution. I’ve had a boring dividend growth strategy in place for a long time, so going forward the difference between the dividends and annual SEPP will become bigger. At some point in the future I willswitch from amortization to the required distribution method (probably about 10 years depending on the actual change in dividend income and portfolio growth, yes I set up my SEPP at an early age.).
I think of it as a safety net for when the markets go down, so I don’t have to sell my stocks and can just pull the dividends. The majority of my holdings are dividend aristocrats and takes into account the occasional dividend cut.2017-05-17 15:32, By: brkr12002, IP: [184.108.40.206]