payment date too soon
L1: payment date too soonI am affraid that I am about 4 months late on this question.
DOB 1-30-57. I am on a “5 year plan” with yearly distribution. 1st distribution taken 8-31-2012. When custodian performed second yearly distribution initiated and dated it 8-30-2013.
When I ask them about the transaction not being dated 8-31-2013 as they were instructed I was told that:
since 8-31-2013 was on a Saturday this year, that the brokerage always rounded Saturday to the previous Friday, and Sunday to the next Monday. So since the previous Friday was 8-30-2013 that is why the transaction was initiated on and dated on 8-30-2013.
They said that would be “ok”.
now I am wondering if the distribution constituted two payments in the same first year (not calendar year, but the same year of the “five year plan” and my plan is busted already???
If so what are your suggestions? (other than I should have had them back this out after I first saw it and now it is too late). When I first saw this I was under the impresion that a 59.5 year plan was the same as a 5 year plan, and all that really mattered was the calendar year.2013-12-05 18:11, By: ihf, IP: [184.108.40.206]
L2: payment date too soonYou are probably Ok. However, in case of an audit I would definately get something in writing from an officer in the bank that outlines why the distribution was made a day early and that the decision was the bank’s decision and not yours.
I wouild also ask them that should this event should happen again, that they should process on the next business day following 8/31.2013-12-05 18:49, By: Gfw, IP: [220.127.116.11]
L3: payment date too soonThank You2013-12-05 21:56, By: ihf, IP: [18.104.22.168]
L4: payment date too soonI’m confused. I thought that all SEPP 72-T calculations referred to “ANNUAL DISTRIBUTIONS” based upon a CALENDAR YEAR. I thought that you could take either a pro-rata distribution or a 100% annual distribution in the first year, and then at any frequency in all future years so long as the total CALENDAR YEAR distributions were the same. If that is not the case, and it is based upon a FISCAL YEAR, then that would mean that someone could not take any distribution in the 2nd year until after 366 days from the first year “full distribution”, and that if they took pro-rata monthly distributions the first year, they could not take more than the remaining pro-rata distribution in the 2nd year until the anniversary date, etc.
I do not remember ever seeing this limitation mentioned or discussed before. On the other hand, I think that often we have said that if they took 100% at any time in the 1st year, they could take any amounts at any time during the 2nd year, etc. When did the rules change to FISCAL YEAR from CALENDAR YEAR ?2013-12-06 00:54, By: dlzallestaxes, IP: [22.214.171.124]
L5: payment date too soonto dlzallestaxes
gfw had spoke to this, when answering a previousquestion I had ask inquiring as to the suitability of changing my annual distribution date on a 5 year plan.
I’m not sure of the proper way to reference that log other than to say:
named “changing annual payment date”
dated “2013-09-08 02:54”
As you could see in the payment schedule table I had proposed, there would have been quite a long time in the period between my last payment date and first modification date (1-15-16 to 9-1-17) and a short physical year atthe time of the proposed new distribution date change (annual distribution date payments on 8-30-13 and 1-15-14, or two calendar years in4 1/2 physical months.
I elected not to change my distribution date, and am shuffling my budget a different way.
when I was working on something else today I started to wonder about the actual dates as mentioned at the begining of todays log. I should have had the transaction date changed to 9-2-2013, but now I will ask them for a letter.
2013-12-06 05:29, By: ihf, IP: [126.96.36.199]