End of SEPP question
L1: End of SEPP questionFirst, thank you all so much for the wealth of information on this site.
My date of birth is 11/15/1957. I have an existing SEPP in which the first annual distribution started on Jan 20, 2012 and I have received an annual distribution every January, including this January 2017 for the same amount each year. So I have been receiving distributions for 60 months, but have not turned 59 1/2 yet. I turn 59 1/2 in May 15, 2017.
Am I correct that I could make an additional withdrawal from the account after May 15th 2017 and just make sure I complete the 5329 correctly? Do you think it would just be safer to just wait until 2018 when I should have no restrictions?
Thank you to everyone who contributes on this site.2017-03-09 05:32, By: Marnielynne, IP: [18.104.22.168]
L2: End of SEPP questionCorrect. If you take additional withdrawals after you are 59 1/2, they should be reported on a separate 1099-R coded with a “7” as a “normal distribution” because you will be 59 1/2. The 5329 is used to report to the IRS the fact that the “early distribution” qualifies for the SEPP 72-T exception on just those distributions before 59 1/2.2017-03-09 06:03, By: dlzallestaxes, IP: [22.214.171.124]
L3: End of SEPP questionThank you! I really appreciate all the knowledge I have gained through this site.2017-03-09 19:09, By: Marnielynne, IP: [126.96.36.199]