More than Minimum SEPP Withdrawal

L1: More than Minimum SEPP Withdrawal
I am about to move $300K from a 401K to an IRA. I would like to draw down 25K annually until depleted. I am 50, spouse is 50.
I would like to take first distribution on 1/1/2011. Can I take more than the minimum without running afoul of the law as long as I take it every year until 59.5?

Here are the numbers from the calculator:

40.4 Years
Life Expectancy

$6,435.64 [$536.30/mo]
1] Minimum Distribution Method

$10,123.34 [$843.61/mo]
2] Amortization Method

$9,915.34 [$826.28/mo]
3] Annuitization Method

Date:7/24/2011

2011-07-24 21:07, By: Robert, IP: [98.197.187.9]

L2: More than Minimum SEPP Withdrawal
You have a misconception. Assuming the other input is correct, the numbers illustrated are not the minimum, they are the exact amount. Take out more or take out less and you have a busted plan.
Try using a single life expectancy, it will increase the amount of the distribution, but not by the amount that you are looking for.
BTW… you can’t take the first distribution on 1/1/2011, we are already in July

2011-07-24 21:38, By: Gfw, IP: [24.148.10.164]

L3: More than Minimum SEPP Withdrawal
You apparently have no idea what a SEPP 72-T plan is, or how it works. I suggest that you read all of the information on this website, and even buy the book and study it.
Basically:
1. You pick an IRA account, or accounts, to be included in your plan.
2. You pick a date for the balances to be included, usually any date within the past 6 months, and usually, but not necessarily, a month-end because you probably have a statement with values on that date.
3. Determine 120% of the federal interest rate that you can use as of either of the 2 months before your first distribution.
4. Use your age as of 12/31 of the end of the first calendar year (i.e. current year) of your plan.
5. Use the calculator on this website to determine the ANNUAL DISTRIBUTION AMOUNT.
6. If the amount in # 5 exceeds the amount that you want/need each year, then use the REVERSE CALCULATOR using the amount you want/need to determine the total of the IRA accounts that you should include in your “SEPP 72-T PLAN UNIVERSE”. Then transfer the
excess into a separate IRA account that willl not be part of your plan universe, and which can be used in the future to set up a 2nd plan, or be used for emergency funds in the future.
7. If the amount in # 5 is less than the amount you want/need, then you might have to put less than the full amount into your plan universe, which will result in a smaller amount that can be distributed without being subject to the 10% penalty, and the supplement
the plan amount with additional distributions from another IRA account that is not in a plan, and those distributions will be subject to the 10% penalty.
8. In the first calendar year, you can take EITHER the prorated amount for the remaining months in the year, or 100% of the Annual Distribution, no more, and no less of either amount.
9. If you do not understand items 1-8 above, and even if you do, consider hiring a professional advisor to guide you thru this process.
2011-07-26 01:04, By: dlzallestaxes, IP: [96.227.217.194]