Monthly Distributions

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L1: Monthly DistributionsIf you start a SEPP with monthly distributions, can you change to quarterly, annually or back and forth between them so long as in aggregate they don’t exceed the annual amount for the Amortization Method? Would switching as I described trigger the 10% penalty?2009-05-18 18:09, By: Jimbo, IP: []
L2: Monthly DistributionsYou can switch your distribution frequency and pattern within a calendar year or from year to year, AS LONG AS the annual amount you withdraw in each calendar year is correct.
The correct amount is not just a maximum, but is an exact amount each year. So if you make changes, there is moreneed to double check your math as you go sincefrequent changes increase the risk of an error, either on your part or the IRA custodian.If you take monthly distributions, set them up early in the month, so you have time in December to make any last minute change you need without worrying about the Holiday rush and not being able to get the correction made.2009-05-18 18:32, By: Alan S., IP: []