file 2 5329’s?
L1: file 2 5329’s?Hello, If I do a sepp AND a 401K withdrawal in the same year, must I file two 5329 forms? These two actions have different exception codes ( so would need 2 forms). I am 56, and separated from service this year.2009-01-20 21:44, By: new sepp question, IP: [126.96.36.199]
L2: file 2 5329’s?Yes, you could attach one 5329 for each exception code and amount that applies. Alternatively, you could use Code 12 (Other) and attach a statement with the breakdown.Note that since the 401k for the employer that you separated from at age 55 or later is eligible for the age 55 penalty exception, so you might not even need to start a SEPP. Just take the distributions from the plan until age 59.5, then roll it over.You might still need the SEPP if:1) This particular plan balance is too small to provide for your needs for 3.5 years.2) The plan will not offer you adjustable installment or annual distributions, thereby forcing you do take out too much at one time and inflate your tax bracket for the year of distribution.But, check this out with the plan SPD or plan administrator, as there is no good reason to start a SEPP when you already qualify for a penalty exception.2009-01-21 01:44, By: Alan S., IP: [188.8.131.52]