Ending SEPP under RR 2002-62
L1: Ending SEPP under RR 2002-62
I’m under 72t Rev Ruling 2002-62. I turn 59 1/2 Jan 31. I’ve been taking the annual amount on a monthly basis. For my final payment doI just get my last RMD calculated check in January based on the pro-rated monthly amount or should I take the entire calculated
annual payment amount out before I turn 59 1/2? Then in February can I take any additional income out under normal distribution?
FYI – my first payment was fixed ammoritization method starting in 2002, I switched to the RMD method 5 years ago.
Please advise on if I should take the annual calculated amount before I turn 59 1/2 on 1/31/12, or take 1/12 of the annual payment, or have I satisfied and should take nothing?
Thanks in advance.
2012-01-05 18:58, By: Flying Advisor, IP: [22.214.171.124]
L2: Ending SEPP under RR 2002-62
You should take nothing out in January since your plan ends in January.
Chances are nothing would happen if you took out the full annual or 1/12 the full annual as well, but the lowest riskoption is to take out nothing in January. After aboutFeb 3rdas a small safety margin, you can do anything you wish with the IRAas your
plan is clearly over.
Taking nothing also eliminates the possibility of a calculation error under the RMD method since each calendar year requires a complete new calculation. It will also eliminate your receipt of a 1099R coded anything but 7 for 2012.
2012-01-06 01:55, By: Alan S., IP: [126.96.36.199]
L3: Ending SEPP under RR 2002-62
You confirmed what we were thinking, researchingand hoping.
2012-01-06 17:27, By: Flying Advisor, IP: [188.8.131.52]