my 2 SEPP plans — checking “end of plan” dates

L1: my 2 SEPP plans — checking “end of plan” datesI started two plans, as follows:PLAN 1Dec 2006 … withdrew $30,000Jan 2007 … withdrew $30,000Jan 2008 … withdrew $30,000Jan 2009 … will withdraw $30,000Jan 2010 … will withdraw $30,000In Dec 2010, my age will be 59 years, 10 monthsDoes this plan end in Dec 2010 ??? (or do I need to withdraw in calendar year 2011)PLAN 2Jan 2007 … withdrew $7,000Jan 2008 … withdrew $7,000Jan 2009 … will withdraw $7,000Jan 2010 … will withdraw $7,000Jan 2011 … will withdraw $7,000In Jan2012, my age will be 60 years, 11 monthsDoes this plan end in Jan2012 ??? (or do I need to withdraw in calendar year 2012)2008-12-29 00:58, By: session52, IP: [76.94.85.4]
L2: my 2 SEPP plans — checking “end of plan” datesStart with the last payment date calculator and enter the exact information that you used at the start of each of your plans. The calculator can be found at the following link…http://72t.net/Sepp/Irc72tLastPaymentDate.aspx2008-12-29 01:06, By: Gfw, IP: [216.80.125.206]

L3: my 2 SEPP plans — checking “end of plan” datesso SEPP plans normally require 6 years of withdrawals ??? (first withdrawal + 5 more years of withdrawals)2008-12-29 01:20, By: session52, IP: [76.94.85.4]

L4: my 2 SEPP plans — checking “end of plan” datesNo. They require withdrawals to the later of 5 years or age 59.5 with the 5 year time period starting on the date of the 1st withdrawal. Using the 5 year rule, you must take a minimum of 5 annual distributions, but you can make any changes in the distribution pattern until the end [First Payment Modification Date] of the 5 year period.2008-12-29 01:32, By: Gfw, IP: [216.80.125.206]

L5: my 2 SEPP plans — checking “end of plan” datesYou have to take at least 5 annual distributions in 5 different calendar years, BUT, you cannot end your plan until at least 60 months have elapsed from the beginning of your plan. For plan 1 statrting Dec. 2006, you satisfy the DISTRIBUTIONS with the 2010 payment(s), but your 60 months will not end until Dec. 2011. We recommend waiting until January 2011 until you “end” the plan. So, in 2011 you can take -0-, or any amount you want because you will be over 59 1/2.For plan 2, you would make a similar calculation accordingly. In January 2012 you would not have to take $ 7,000, so you could take -0-, $ 7,000, or $ 583.33 ( $ 7,000/12). Any of these would satisfy your required distribution. Starting in Feb. 2012 you have satisfied the 5 calendar year rule, the 60 month rule,and age 59 1/2. So starting in Feb. 2012 you can stop all distributions, or take any amount whenever you want.The SEPP 72-T rules are only ways in which you are exempted from the 10% penalty. You are still subject to the income tax. After age 59 1/2, 5 annual payments, and 60 months of a plan, you will only be subject to the income tax.2008-12-29 19:04, By: dlzallestaxes, IP: [96.245.168.66]

L6: my 2 SEPP plans — checking “end of plan” datesI agree that for Plan I, in 2011 you can take no distribution at all, but any distribution that you do take prior to the modification date sometime in Dec, 2011 must be a SEPP distribution. In a nutshell your options are to take nothing in 2011 prior to that December date because you have already taken 60 months, or to take 11/12 of the annual distribution or the full annual distribution. Any amount taken in 2011 before the modification date that is less than 11/12 of your annual distribution and more than -0- would bust the plan.Confusing, I know. Fortuneately, the IRS has been very lax on these final stub year options, but that is no reason to test them unnecessarily.2008-12-30 05:29, By: Alan S., IP: [24.116.165.60]