End of SEPP
L1: End of SEPPSorry just needed some clarification from a previous post. Started 2 distinct SEPP’s( on 2 separate IRA”S)in 2001 and I will be 59 on 8/30/09 andtherefore 59.5 on 2/28/10. One SEPPI do a monthly distribution and the other an annual distribution.In 2010 my plan is to continue the monthly distribution thru 3/10 then lower the distribution to a lesser monthly amount going forward no longer as a SEPP. On the other account, where I take an annual distribution ,is it ok for me not to take any distribution in 2010 or should I take 2/12 of the annual amount based on 12/09 calculation. I dont want to make any mistakes at this point. Thanks for your assistance.2009-06-15 00:05, By: Ed, IP: [220.127.116.11]
L2: End of SEPPEd,
As you know, since these two plans are totally separate, what you elect on one of them has no affect at all on your options for the other one.
For each of these SEPPs, for 2010 your options are very broad. They are:
1) Take nothing
2) Take 1/12 of the annual amount (Feb does not count because you reach 59.5 by month end).
3) Take the full annual amount.
Since it appears you do not need the funds, Option 1 is your best bet.2009-06-15 00:45, By: Alan S., IP: [18.104.22.168]
L3: End of SEPPAlan, wouldn’t there be a fourth option for 2010? From March onward he should be able to take any amount he wishes from the IRA’s since he’s reached 59 1/2 and the SEPP’s have been completed.
So the list of options for 2010 are;
1) take nothing
2) take 1/12
3) take full annual amount
4) After February, take any amount you wish.
2009-06-15 19:46, By: Bobmac, IP: [22.214.171.124]
L4: End of SEPPBobmac,
Yes, the 4th option is correct. I did not list it since the SEPP modification date is at the end of February, so later distributions do not affect it in any way.
If Ed wants to take post SEPP distributions in 2010, for reporting purposes it would be easier to take it from the former annual account from which he plans no distributions in January or Feb. That way, he only has to report one 1099R on his return for 2010, instead of two of them with different distribution codes due to SEPP and non SEPP distributions.2009-06-15 23:55, By: Alan S., IP: [126.96.36.199]