Ending SEPP distributions
L1: Ending SEPP distributions
I have an existing SEPP that I opened in 2002 @ age 49. I am now within 6 months of age 59-1/2 and wish to stop taking distributions soon. I have checked the IRS website and can find nothing that offers guidance on stopping distributions. Are there forms,equations,reporting
procedures that need to be followed? I dont want to wait till the last minute to prepare.
2012-02-24 20:05, By: Rick, IP: [22.214.171.124]
L2: Ending SEPP distributions
You came to the right place.
There is a gold mine of information that is already available on this website that has been posted for those who preceded you.
2012-02-24 20:10, By: dlzallestaxes, IP: [126.96.36.199]
L3: Ending SEPP distributions
This year you have 3 options:
1) Take out nothing prior to reaching 59.5 – this will help preserve your IRA and will eliminate a 1099R
2) Take out a pro rated amount by the month, stopping in the month you reach 59.5
3) Take out the full annual amount prior to reaching 59.5
After 59.5 you can take out as much or as little as you wish. There is no special tax reporting needed when your plan ends.
2012-02-24 21:02, By: Alan S, IP: [188.8.131.52]
L4: Ending SEPP distributionsEureka! This is also the info I’ve been seeking!
Odd though… so it’s true that not just any amount can be taken in the year I turn 59.5. It must be zero, part-year prorated, or thefull annual amount? If the IRS says “UNTIL the year I turn 59.5”, and I’ve met the 5 year rule, why do they care what I do in the 59.5 year?
Ending the plan is the most confusing part of the whole process to me! As a math major, the rest was a piece of cake. ((c82012-03-15 07:56, By: AZscott, IP: [184.108.40.206]