last year of plan
L1: last year of planHello, here is my info:
started 72T in 2009 with a full dist. for that year
taking entire yearly dist. Jan of each year 2010 2011 2012 2013 2014 2015 2016 2017
I will be 59.5 in the year 2018.
My question is: Do I have to take a72T dist in 2018 before the modification date? what are my choices for 2018?
Thanks very much!!!!!2013-06-24 15:33, By: retiredin2009, IP: [22.214.171.124]
L2: last year of planQuestion #1, No
You have the following 3 options in the final year prior to 59.5:
#1 Take the full annual amount
#2 Take 5 pro-rated monthly payments
#3 Take nothing at all2013-06-26 16:17, By: Scott, IP: [126.96.36.199]
L3: last year of planHi all,
I’m in a similar situation except I turn 59.5 in May 2014. Just want to know if anything supporting Scott’s reply has changed since the original thread. I started my SEPPs in 2001 and have received exact equal annual distributions on a quarterly basis.
I think I understand the logic behind his reply vis a vis 2002-62 but if anyone wants to explainhis reasoningplease do. I’m also wondering out of the 3 options which one may be the most preferred for whatever reason based on recent PL’s etc.
Zin2013-12-04 16:22, By: Zin2B, IP: [188.8.131.52]
L4: last year of planAnswer # 2 of 5 monthly payments apparently comes from the fact that he was born in May. Usually I think it would be based upon the prorata distributions which apply only if you are taking the 5th payment in a final year in which you reach 59 1/2. After 5 annual payments and reaching age 59 1/2, I think that you can take any amount after that “termination date”.
I think that the usual options are -0- or 100%, unless you took a prorated distribution the first year, in which case you could take the reciprical distribution in the final year if it’s the 5th year. Usually it becomes a tax and/or cash flow issue.
PLR’s do not apply.2013-12-04 20:11, By: dlzallestaxes, IP: [184.108.40.206]
L5: last year of plandlzall…
If I read you correctly I’d be ok with taking a 100% distribution after Jan 1, 2014 andprior to let’s say May 19,2014 or as the other option says, take nothing. It looks to me that as long as you do so you’ve complied with meeting taking distributions until reaching 59.5. I think I also understand why they let you concurrently take nothing as well – considering an annual distribution could be taken 12/31/14 but in that case it’s moot as you’re already past 59.5 and no SEPP distribution would’ve been required anyway.
2013-12-04 23:37, By: Zin2B, IP: [220.127.116.11]