pro rating sepp
L1: pro rating sepphi
Just set up account at Fidelity 1st distribution for June 15 was told I wouldn’t be able to get the monies for the previous months. My understanding after reading info on your site can receive monies and how do I make that happen?2013-05-04 23:25, By: nessa, IP: [18.104.22.168]
L2: pro rating sepp1. Transfer your IRAs to Vanguard where they may understand SEPP 72-T accounts better than Fidelity.
2. If you want to stay at Fidelity, ask for a supervisor to see if you can find someone who understands SEPP 72-T.
3. May the person you spoke to does not know the difference between a SEP IRA and a SEPP. Sometimes you have to explain what you want more than just saying it, because they sound the same.2013-05-04 23:36, By: dlzallestaxes, IP: [22.214.171.124]
L3: pro rating seppJust opened the acct yesterday. My question do I call and tell them to send me a check for the other monies after I get the first check or do I request check at the same time as first payment.
2013-05-04 23:42, By: nessa, IP: [126.96.36.199]
L4: pro rating seppIt doesn’t matter. You can take either 100% of the annual distribution in whatever amounts or frequencies you want in 2013, and continuing or changing the frequencies and amounts in any or all future years so long as you take the same annual amount by 12/31 each calendar year, or in the first calendar year (2013) you can take 7/12 of the annual amount if you take a first distribution of any amount in June 2013 divided up whatever way that you want, so long as the total taken in 2013 is either 7/12 or 100% of the annual calculated amount.
I would make sure that Fidelity understands and agrees that what you want to do is acceptable to them based upon their procedures. I would request a written agreement from them before taking my first distribution indicating the dates and amounts of alll distributions in 2013, and preliminarily your plans for 2014 distribution timing and amounts.
P.S. If possible, we suggest that you keep a separate IRA account(s) for emergency purposes, ratherthan commiting all of your IRA’s to the SEPP Universe.2013-05-05 05:39, By: dlzallestaxes, IP: [188.8.131.52]
L5: pro rating seppFirst, it should be important that you understand what type of SEPP plan you’re creating. Assuming a birth date of 4/20/59, and a first distribution of 6/15/13, your plan will run longer than 5 years turning 59.5 on 10/20/18. This means your plan gives you a bit more flexability. You may take 7 monthy payments, of a full annual distribution this year.
Fidelity has no rules for SEPP plans that I’m aware of. You take what you want when you want and they’ll send you a 1099R with a code 1 at the end of the year, and you will file a form 5329 to prove it was a SEPP dispursement. You have a responsibility to document your SEPP and you may share this with them if you choose. The SEPP is YOUR responsibility, and is between you and the IRS only. If you don’t feel confident in doing it yourself then seek competent services from a professional who understands how a SEPP works.
I use Fidelity and have my checking account tied to my Fidelity account. I go online and transfer funds when I want to with the understanding I’ve gained from this site over the years. You may call them and have them send you a check also. My first distribution I went to their office here in Reno, NV and scheduled an electronic transfer.2013-05-05 10:33, By: Scott, IP: [184.108.40.206]
L4: pro rating seppOne thing to remember – a SEPP, like any IRA, is between you and the IRS. Fidelity doesn’t have to agree one way or the other and probably won’t give you a code of ‘2’ anyway. Merely claim the SEPP exemption on IRS form 5329.2013-05-05 09:55, By: Gfw, IP: [220.127.116.11]
L5: pro rating seppThanks for your replies info very helpful.2013-05-06 21:05, By: nessaf, IP: [18.104.22.168]