L1: Final Year
Next year 2012 will be the last year of my SEPP. In year one, on the day I turned 54.5,I took a partial payment of 4 months. Next year, 2012I will turn 59.5. I am thinking of taking a full payment not the the 8 months payment. Is this ok? I’ve used this
site for all my set up and earlier this year documented my IRS audit issue and the successful outcome. I just want to make sure so I don’t screw up in my final year. Thanks
2011-09-30 03:30, By: Rick, IP: [22.214.171.124]
L2: Final Year
Can you offer a little more information…
What is your date of birth? What was the date of the initial distribution? When will you have taken a minimum of 5 annual distributions?
2011-09-30 11:53, By: Gfw, IP: [126.96.36.199]
L3: Final Year
GFW, birth date 3/4/53, date of first distribution 09/04/2007, plan ends 09/04/2012.
2011-09-30 12:02, By: Rick, IP: [188.8.131.52]
L4: Final Year
Interesting coordination of dates… 5 years is up on 9/3/12 and you turn age 59.5 on 9/4/2012.
You should have no problem taking the full annual distribution which if I counted right would be your 6th annual distribution.
2011-09-30 12:12, By: Gfw, IP: [184.108.40.206]
L5: Final Year
If you took 4 months in 2007, then you will have taken the needed “5 years worth” of monthly payments after youget themonthly payment in the 8th month of 2012. Since the plan ends in early Sept 2012, I would suggest taking the 8 months worth thru August
2012, and then after your 591/2 birthday,take either the other 4 months worth, or whatever amount you want in the balance of 2012, sometime after 9/4/2012. I would also suggest that you remind your custodian when you hit 59 1/2, that any future payments
should be coded as “normal distribution”, since you have taken 5 years worth of SEPP payments and are now over 59 1/2, and to discontinue the automatic payments after August 2012. KEN
2011-10-01 03:21, By: Ken, IP: [220.127.116.11]
L6: Final Year
Ken, the payments are only taken on an annual basis. They are based on my request and the custodian does not do anything automatically. Once I take my final payment in August, which I intend to be a full yearpayment, I will not take any payments from this
custodian for at least a year. Thanks for your reply
2011-10-01 11:12, By: Rick, IP: [18.104.22.168]
L7: Final Year
Ken was only indicating that you do have an option in the final year. It is immaterial that you were taking annual distributions in all preceding years. In any year, even the final year, you are allowed to change frequency of payments. Your cash flow needs,
and tax situation, should be taken into consideration in etermining whether to take your prorated 8/12, or a full 100% of your annual distribution amount. It might be prudent to consider taking the other 4/12 in the following January, under certain circumstances.
2011-10-01 15:13, By: dlzallestaxes, IP: [22.214.171.124]