First and Second SEPP Distributions

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L1: First and Second SEPP DistributionsHi, After reading many posts I just want clarification on SEPP distributions. If I calculate that I will receive 32,000 annually as my SEPP payment, and I start my plan (or first distribution) on 1AUG2017: (1) I could choose to receive the entire annual amount, or $32,000, with this distribution in AUG2017. (2) I then could take an additional distribution of $32,000 in JAN2018. Next possible distribution date after this would be JAN2019. Is my thinking correct? I really appreciate your site! Thanks.2017-06-01 20:48, By: Newbie87, IP: []
L2: First and Second SEPP DistributionsYes, you are correct. But taking out the entire annual SEPP distribution in January puts some extra budgeting pressure on you. It could tend to make you feel very comfortable regarding spending for the first 6 months, then not so comfortable as the year winds down.
Also, having your first distribution on either the last couple days of the month or the first couple days of the month exposes you to potential error on the interest rate you are eligible to use. An August distribution eliminates May and prior interest rates, but it brings the July rate into play. Your first distribution is deemed made on the date your account statement shows the distribution (date distributed) which will be a couple days before the day you receive it in your mailbox or direct deposit into your bank account.
2017-06-01 21:25, By: Alan S, IP: []

L3: First and Second SEPP DistributionsI also don’t like distributions before the 5th of the month because some institution might issue it 12/31 if there is a long holiday weekend, and your distribution was set for the 1st, 2nd, or 3rd of January.
On the other hand, we also suggest taking the Dec distribution is no later than 12/15, just in case there is any error that has to be corrected before 12/31.2017-06-02 01:49, By: dlzallestaxes, IP: []

L2: First and Second SEPP DistributionsNewbie87…
Maybe you were just rounding, but the distribution that I calculated on your previous post was$31,985.76.The$31,985.76 is the amount that should be distributed, not $32,0002017-06-03 20:42, By: Gfw, IP: []