How much is the penalty to break SEPP?
L1: How much is the penalty to break SEPP?I’m age 51, just started SEPP last year in August (6 months). Recently drained my savings on repairs, etc. I have about $500K, need to get at $10,000 immediately, and think I should set aside $15,000 in case this happens again. If I break the SEPP, what are the penalties involved? And can I restart my SEPP? Your help is appreciated.2010-02-03 18:56, By: dmorganoh, IP: [188.8.131.52]
L2: How much is the penalty to break SEPP?The penalty will be 10% of amounts withdrawn, plus 10% of any additional withdrawals that aren’t part of the SEPP.Can you re-start? Yes,but you need to put some thought into it first. If you think youshould set aside $15k, you should probably be setting aside more. Determine what your real income needs are and then usethe Reverse Calculator to see how much should be allocated to the SEPP and how much will be allocated to a separate IRA.2010-02-04 11:30, By: Gfw, IP: [184.108.40.206]