IRA and Roth IRA? or just IRA in calculation?
L1: IRA and Roth IRA? or just IRA in calculation?
Thanks in advance, these maybe noob questions………
Will be 52 in Sep. Plan to use 72t in 2014or 2015.
Doing a 401k roll over to Vanguard. Have existing Roth’s there (wife & I both)
When calculating our 72t amount, canwe use both IRA and Roth IRA amounts in the calculation? Or just the IRA amount that’s in my name? (TheVanguard rep didnt know)
Was a little disappointed with the Vanguard rep I spoke to on this. They recommended I get with a tax consultant. And said they do not get involved with the calculations.
Or is there a separate department I should speak with at Vanguard on this?
I get the feeling they do not care for these too much. LOL LOL
2013-08-15 14:40, By: almost there, IP: [220.127.116.11]
L2: IRA and Roth IRA? or just IRA in calculation?1. They are called SEPP 72-T plans, not SEP (which is a “SIMPLIFIED EMPLOYEE PLAN” IRA).
2. Ask for the SEPP 72-T PLAN specialist.
3. The calculations are your responsibility, not theirs.
4. You cannot combine your wife’s balances in your calculations, or vice versa.
5. You should not combine ROTH IRA account balances in the SEPP 72-T calcualtion with your TRADITIONAL IRA. You can make tax-free withdrawals of your CONTRIBUTIONS or CONVERSIONS from your ROTH IRA, which are excellent sources for emergency funds to supplement your SEPP 72-T withdrawals.
6. If you need more money in 2013 and/or 2014, then take a full year’s worth in 2013 to provide extra cash flow, if it doesn’t cause tax problems when added to your other taxable income.
7. Set up 1 SEPP 72-T plan now, possibly another one later in the year or early next year, and maybe even set some of your IRA aside for a possible 3rd plan for flexibility.
8. Meet with a tax and/or financial planner to assist you.2013-08-15 14:53, By: dlzallestaxes, IP: [18.104.22.168]
L3: IRA and Roth IRA? or just IRA in calculation?Thanks for the info.
“Will be 52 in Sep” (September) not SIMPLIFIED EMPLOYEE PLAN.
I just plan on the one SEPP 72-T PLAN.
On $475kit looks like $20,371 annually.
I see on the caulculator here they show a IRS Penalty Rate of 3?
Is that 3%?
2013-08-15 18:51, By: almost there, IP: [22.214.171.124]
L4: IRA and Roth IRA? or just IRA in calculation?The penalty if you break the SEPP is 10% of any previous SEPP distributions plus interest – the current estimated interest rate payable in addition to the penalty is 3%.
Unless you have otehr assets that you can use for an emergency, you would be better off dividing your IRA into 2 account – one for the SEPP and the other for emergencies.
2013-08-15 19:01, By: Gfw, IP: [126.96.36.199]
L5: IRA and Roth IRA? or just IRA in calculation?ALMOST THERE — I think that your response should have been ” I’ll have to look into the idea of having a SEPP and a separate IRA for emergencies”, I hadn’t thought of that. Rather than “I plan to have 1 SEPP plan.”
You should read the many previous postings on this website, and try to understand the potential for possibly/probably having to bust your SEPP plan over the 9 1/2 years until you are 59 1/2. The penalties 5-8 or 9 years down the road will be brutal.2013-08-17 17:29, By: dlzallestaxes, IP: [188.8.131.52]