# Last Distribution Date

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L1: Last Distribution DateWe have a client who took their first SEPP in January 2005 at age 57 1/2. They took subsequent distributions in January of 06, 07, 08 and then 1/2 in January 09 and another 1/2 inFebruary 09. Would that have ended their 5 years or do they need to take another in January 2010? Thanks in advance for your help.2009-09-21 15:32, By: Kim, IP: [12.31.97.44]
L2: Last Distribution DateYou can use our calculator at http://72t.net/FirstModificatonDate to find the answer. 2009-09-21 15:47, By: Gfw, IP: [216.80.125.206]

L3: Last Distribution DateThis is always an area of confusion. As indicated numerous times on this website :
You cannot terminate the SEPP 72-T plan until the later of 5 years ( 60 months) after the first payment, or age 59 1/2 ( if later).
During that period you must have taken the equivalent of 5 annual payments. Even if you take them during the first 49 or 50months, as in your example, you still must wait until after the 60th month if you want to take any additional amounts, other than special ones per the Benz decision, if you really need to and are comfortable with that case and the expanded commentary and interpretations.2009-09-21 19:24, By: dlzallestaxes, IP: [72.78.110.230]

L2: September SEPP rateWe have it posted at several locations on this website…
Maximum Interest Rates
for 72(t) & 72(q) SEPP Plans where the initial distribution occurs
during the following time periods: 09/01/2009-09/30/2009: 3.37% | 10/01/2009-10/31/2009: 3.45% | 11/01/2009-11/30/2009: 3.45%2009-09-20 13:56, By: Gfw, IP: [216.80.125.206]

L3: September SEPP rateMy confusion stems from the following previously posted question:
“I started my SEPP distribution using the 3.37% midterm interest
ratethis site published for September ’09.Now that the
actualpublished rate is 3.20%, willthe IRS penalize me for using the
3.37% asthe mid-term instead of the actual 3.20% rate? I have not
received the first SEPP payout yetso how do Icorrect thisbefore the
first payout is processed?”
Does one use the 3.37% maximum interest rate for September as posted on the website, or the actual 3.20% published rate as posted in the above question to make proper calculations?2009-09-20 14:53, By: dihanna, IP: [75.21.80.231]

L4: September SEPP rateBased on your question, I suggest that before starting your SEPP, you do a little more additional reading or talk to a professional.
We clearly state on our Interest Rate page (http://72t.net/MidTermInterestRates) that the maximum interest rate that may be used for a SEPP plan is any interest rate
that is not more than 120 percent of the federal mid-term rate for either of the
two months immediately preceding the month in which the distribution begins.
The 3.20% is the published rate for October which means that the soonest it can be used in for a plan starting in November.
For a plan that starts in September, 3.37% is the maximum rate. For a plan that starts in October, 3.45%.
As I stared earlier, before starting your SEPP, you do a little more additional reading or talk to a professional.
2009-09-20 15:00, By: Gfw, IP: [216.80.125.206]

L5: September SEPP rateSo I can use the 3.45% for a plan that starts in October. Just wanted to be sure what to plug in to my calculations. I do know I can use the balance as of 9/30 and my age this year. I appreciate your help. Thanks for answering. 2009-09-20 19:53, By: dihanna, IP: [75.21.80.231]