Part time work

L1: Part time workFriends , I need some help and ML rep seemed not so sure. I am in a company plan and am 58 years old ,retired but still working part time (@ 20K/yr) at a local HS. ML seemed to think I could not work at all to take advantage of setting up a SEPP. My reading says I only need to be retired from the Company where I have the plan. I want to start withdrawals but continue to work part time for another couple of years. Is this possible? Thanks for your help.2007-06-07 07:24, By: steve, IP: [216.158.30.126]
L2: Part time workHello Steve:
Your part-time work is irrelevant to taking of distributions. Now, if you retired from your prior employer (where the plan is) in a year when you were 55 or older & the assets are still in the company plan; then you can take unstructured withdrawals from that plan without the 10% surtax. Conversely, if you terminated before age 55, then you would need to launch a SEPP plan to obtain the same results.
TheBadger
wjstecker@wispertel.net
2007-06-07 07:35, By: TheBadger, IP: [72.42.66.90]

L2: Part time workthanks . I retired ( was pushed out) at 52. I appreciate your quick answer.2007-06-07 10:16, By: Steve , IP: [68.162.117.20]

L2: Part time workYou should indicate who ML is representing. Are they the administrator of your former company”s plan, or is that where you have your IRA? Are they advising you about withdrawals from your former company”s plan, or from your IRA ? Your former company may not allow SEPP withdrawals. Regardless, you can do a trustee-to-trustee transfer from a company plan (401-K) to your own IRA at ANY BROKER. If you aren”t compfortable with the ML rep, there are many other brokers and mutual fund companies (like Vanguard) who are knowledgeable in setting up SEPP 72-T plans. However, at your age, think about the alternative of either finding another way to fund your needs until age 59 1/2 (like home equity loan), or determine the cost of just taking distributions and paying the tax plus the 10% penalty until you are 59 1/2. At that time you can take unlimited distributions. This may be better than having to lock yourself into a SEPP 72-T until you are 63 (i.e. 5 years). Also, you can use part of your retirement accounts to fund a SEPP 72-T for 5 years, and supplement that with withdrawals (and 10%penalty) until you are 59 1/2. DEVELOP A PLAN !!!!!

2007-06-07 17:20, By: dlzallestaxes, IP: [141.152.249.94]