IRA CD and SEPP

L1: IRA CD and SEPPI have a couple of quick questions. What happens if you set up a 72t/SEPP on an IRA CD and the CD matures before you are 59 1/2? My wife has a 4 year IRA CD that she wants to do an SEPP on but she will not be 59 1/2 within 4 years……
Also, this is probably a really stupid question but can both my wife and I have a 72t setup? I was concerned that there might be some rule of only one per household…..
Thanks
Mike2009-06-24 16:53, By: Mike, IP: [75.2.24.244]

L2: IRA CD and SEPP1. Husbands and wives cannot have JOINT SEPP plans because they cannot have joint IRA accounts.
2. Any taxpayer can have 1, or more, SEPP 72-T, plans.
3. Each SEPP 72-T plan can have 1 or more IRA accounts as the basis for each plan.
4. If your CD matures before you reach the later of 59 1/2 or 5 years, you are in great shape. You can just keep the proceeds in a money market account, or buy shorter CDs. Or you can buy longer CDs because once you reach the term limit, the SEPP 72-T ends, and the investments stay in the respective IRA just like any traditional IRA.2009-06-24 21:29, By: dlzallestaxes, IP: [96.245.168.66]

L3: IRA CD and SEPPThank you very much!2009-06-24 22:47, By: Mike, IP: [75.2.24.244]

L4: IRA CD and SEPPMike,
Remember that the interest the CD pays out has no direct connection with a valid SEPP calculation. She cannot simply distribute the interest and expect it to comply. She has the flexibility to use an interest rate in the SEPP calculation less than the max rate for the beginning month, but no telling that would work until someone does the calculations. CDs are awkward to work with due to lack of flexibility unless they are broker CDs held in a brokerage account and only part of the total assets.2009-06-25 01:59, By: Alan S., IP: [24.116.165.60]