L1: last paymentHi,
Just received notification from my custodian that plan will expire on 10-22-2009. I started the amortization plan on 9-27-2004 and have been receiving monthly payments every month on the 25th. The calculator shows my first modification date is 10-23-2009. My confusion is my money is deposited every month into my checking account around the 25th of the month , since the last payment date is before the october 25th date. Do I have to do something to pay for october?2009-09-05 23:45, By: keani4me2000, IP: [188.8.131.52]
L2: last paymentMerely a matter of terminology. They are saying that your plan ends on 10/22 and our calculator is stating that your “First Payment Modification Date” is 10/23. Both are stating the same thing. You shouldn’t have any problems based on the dates.2009-09-05 23:58, By: Gfw, IP: [184.108.40.206]
L2: last paymentNo October distribution is required, nor should one be taken.
I assume you turn 59.5 in Octoberbased on the calculator result you mentioned. Bythe end ofSeptember you will have taken 61 months of payments so have met the 5 year requirement. You do not have to take a distribution in the month you turn 59.5 aftermeeting the 5 year requirement. You will have taken 9/12 of your 2009 full annual distribution, which is your correct pro rate factor based on an October modification date for your plan.
After 10/23 you can take any amount you wish or nothing for the rest of the year. Taking nothingfurther in 2009 after 10/23 will probably simplify your tax filingbased on possible combinations of 1099R forms you will receive and the Form 5329 you probably have to file to correct the 1099R coding.2009-09-06 00:17, By: Alan S., IP: [220.127.116.11]
L3: last paymentThank you for your reponse, and yes I will be 59 1/2 in October.2009-09-07 16:38, By: keani4me2000, IP: [18.104.22.168]