Long Duration?

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L1: Long Duration?What’s the longest someone has set up a SEPP plan? I’m targeting retiring at 45? Is it typical to have aSEPPfor almost 15 years? What are any potential pitfalls for having such a long duration? Obviously, busting the plan towards the end would have huge cumulative penalties to pay for 10% penalties. The only other downfall I can think of is the uncertainty of the markett and being locked into withdrawals for 15 years.2015-07-06 21:36, By: vantran, IP: [64.248.59.58]
L2: Long Duration?Depending upon your balance, and needs, we usually recommend setting up 2 or more SEPP 72-T accounts and plans, as well as keeping a reserve not in any SEPP for emergencies in the future to hopefully avoid busting an entire plan. The uncertainty of the market is not as much of a consideration because there is no requirement that you have to take more funds (per your annual withdrawal) than you still have available. Busting the plan that way will not result in the retroactive 10% penalties.2015-07-07 00:59, By: dlzallestaxes, IP: [98.114.199.232]

L2: Long Duration?I’m retiring next year, will be turning 37, but not setting up 72t until year I turn 38 (2017). Follow the above tips. Make sure you know the details of your spending extremely well and don’t forget to account for inflation. Accumulate money outside of an IRA as well, like in a brokerage account, to lessen dependence on 72t.2015-07-09 13:29, By: brkr12002, IP: [97.65.53.253]