last year withdrawl amount
L1: last year withdrawl amountI turn 59.5 in august of this year and have 5 years of sepp withdrawls in february. I take monthly withdrawls. By august I won,t have taken a full years withdrawl yet but my plan will be over. Do I need to take a full years withdrawl or can it be prorated to the time I turn 59.5thanks John2010-02-08 20:59, By: john, IP: [126.96.36.199]
L2: last year withdrawl amountStart by usingthe First Modification Date calculatorto make sure that you have the actual ending date.If you have taken at a minimum 5 times the calculated annual withdrawal and 365 days times 5 years plus 2 days has passed since the date of the1stdistribution, then the5 -year rule has been met.If taking monthly withdrawals and you have indeedmet the 5 year rule, the final distribution can be prorated to your age 59.5.As stated previously, start withthe First Modification Date calculator2010-02-08 21:52, By: Gfw, IP: [188.8.131.52]
L2: last year withdrawl amountJohn,From your post I take it that this month’s distribution will be your 60th, or through this month you will have taken out 5 times your annual distribution amount in total. If so, you have various choices:1) You can stop distributions after your 60th month since you also turn 59.5 this year2) You can continue your monthly distributions through July (7 months this year)3) You could take out more if you needed to, such that 12 months worth would be distributed prior to the date you turn 59.5If you choose to continue monthly distributions, my impression is that the IRS does NOT care whether you take an August distribution or not. August is the month your plan ENDS. But since your plan ends in August, technically I think it isbest that you do NOT take an August distribution. Again, there has been no indication that the IRS cares whether your last distribution comes inJuly or August in this situation, ie. they deem either 7 or 8 months in this case to constitute substantially equal payments.Another advantage of ending in July is that if you are on an automatic distribution day each monthfrom your IRA custodian, you do not have to be concerned whether that date falls before or after the August day you hit 59.5.Perhaps gfw will provide his thoughts on this.2010-02-08 22:02, By: Alan S., IP: [184.108.40.206]
L3: last year withdrawl amountwhat I would like to do is just keep taking the exact same monthly distribution until the end of the year since I need the money. Is this ok? thanks2010-02-08 23:51, By: john, IP: [220.127.116.11]
L4: last year withdrawl amountYes, that is OK.After your modification date, which you can determine from the calculator on this site, you are free to distribute any amount you wish. In other words, only prior to the modification date do you have to be careful to assure that your distributions qualify as SEPP distributions. But continuing the monthly amounts as is is fine.You will probably get 2 1099R forms for the year. The one for your distributions after the modification date should be coded with a 7. The ones prior should be a 2, but if you get a 1 on this portion, you will need a 5329 to change it to “02”. You can leave the 7 amount as is.
2010-02-09 02:44, By: Alan S., IP: [18.104.22.168]