final distribution

L1: final distributionHi,Last month I exhausted the account that was being used for monthy SEPP withdrawals. The final withdrawal was several thousand dollars less than normal.The account has since been credetit with $.97 interest, so I wll get another, much smaller check this month. I assume that this won”t matter, and my withdrawal plan still qualifies under the rules. Correct?2006-11-12 06:57, By: markd, IP: [24.192.3.126]
L2: final distributionDid your annual distributions meet the required minimum, i.e. at least five years and 59.5?
2006-11-12 07:15, By: GRT, IP: [24.145.246.83]

L2: final distributionWhether or not your plan met the requirements is unknown since you posted nothing about the actual plan. However, exhausting plan assets will not ”bust” the plan.

Rev.Rul. 2002-62, Section 3(a)Complete depletion of assets. If, as a result of following an acceptable method of determining substantially equal periodic payments, an individual”s assets in an individual account plan or an IRA are exhausted, the individual will not be subject to additional income tax under 72(t)(1) as a result of not receiving substantially equal periodic payments and the resulting cessation of payments will not be treated as a modification of the series of payments.
2006-11-12 08:46, By: Gfw, IP: [172.16.1.76]

L2: final distributionSorry for not posting more information. I have no question that myplan initially met all of the requirements of 72(t). And I know that for a valid plan, 2002-62 Sec. 3(a) exempts me from penalty for exhausting the plan.
My question really deals with the fact that my last two monthly payments (instead of only the last one) are less than the planned monthly distribution.
If the “bust” isevaluated based on annual distributions, I”m OK, since each year (until 2006) my distributions were exactly as planned. 2006-11-12 13:39, By: markd, IP: [24.192.3.126]

L2: final distributionExcept for purposes of the 5-year rule, distributions from a SEPP are always looked at as annual distributions made during the calendar year.2006-11-13 05:11, By: Gfw, IP: [172.16.1.76]

L2: final distributionHello Mark D:
Just to cover all bases, please calrify your first sentence:
Last month I exhausted the account that was being used for monthy SEPP withdrawals.
Is the account you exhausted the ONLY account that made up your SEPP universe, or are there other accounts and this in the one you used for distributions?
If you only had one account then you are home free as to 72(t) … albeityou are out of money which is not good. Otherwise you still have a valid SEPP Plan and you will have to begin distributions from the other account(s).
Jim2006-11-13 09:36, By: Jim, IP: [70.184.2.72]

L2: final distributionJim,Only one of my IRA accounts was included. I still have another to draw on, but it was not considered when the withdrawal calculation was made.2006-11-14 17:34, By: markd, IP: [24.192.3.126]