Do I Understand This Correctly?

L1: Do I Understand This Correctly?I’ve had a traditional IRA since 1986 but am just now discovering rule 72(t) which appears tailor made for my situation. I’m 50, still working full-time in addition to receiving a modest military pension. I’d like to retire but need just a little more additional income than the pension provides. I’ve read several pages of posts and think I understand how all of this works but would like a couple of assumptions confirmed, refuted, or clarified.
1 – Regardless of the distribution method (RMD, amort, annuit) chosen when first establishing a SEPP, the terms and rules under 72(t) only apply for 5 years or upon until age 59 1/2, whichever occurs later. And upon reaching that milestone, the SEPP is then essentially null and void and the rules governing regular IRAs go into effect. Which means I could then do what I wish, when I wish with whatever remains of the IRA corpus, including no further distributions (until 70 1/2) or liquidating the IRA in its entirety. Correct?
2 – ANY excess withdrawls from the SEPP will bust the plan. Correct? Pub. 590 states the use of the word “minimum” in the “Required Minimum Distribution” method is a misnomer and that the RMD is actually the exact amount to be distributed annually. Is the same true of the amount displayed by 72t calculators when using the fixed annuity/fixed amortization options?
3 – To massage somewhat the amount received each year when initially setting up a SEPP, it’s MY choice as to which distribution method to use, which expectancy table to use (single, joint, uniform) and which interest rate to use (as long as it doesn’t exceed 120% of the federal mid-term rate). All true?
4 – You cannot add funds to any IRA producing distributions as a SEPP. But you can continue to add funds to a separate non-SEPP IRA (different account/custodian). Right?
5 – Finally, am I correct in assuming that if I’m receiving withdrawls from a SEPP traditional IRA, and also have a separate non-SEPP Roth IRA, taking a withdrawl from the Roth would result in an excess distribution? I’d be liable for the 10 percent penalty on the withdraw from the Roth (and only the Roth) and I wouldn’t bust the SEPP?
Thanks for clarifying all of this. This is an excellent boared with lots of useful information. (But I think I’ll still buy Bill’s book). 2005-04-21 18:58, By: MU50, IP: [68.10.111.87]

L2: Do I Understand This Correctly?1: Correct – between 59.5 and 70.5 you can pretty much do as you wish – take lots or none.
2:Yes
3:Yes – these choices can be made as desired when the plan is established. There is also the possibility of annual recalculation for years after the first based on the same method selected at the time the plan was established.
4:Yes
5:Correct – and make sure that you keep accurate records of the accounts as the SEPP begins and in the years to follow.
Good luck 2005-04-22 04:31, By: Gfw, IP: [172.16.1.73]