Question on SEPP distribution
L1: Question on SEPP distributionI started my SEPP on Feb 2013. Born Feb 28, 1959 and will turn 59 1/2 on Aug 28, 2018. Have taken or plan to take equal annual distributions as follows:
Feb 6, 2013
Feb 6, 2014
Feb 6, 2015
Feb 6, 2016
Feb 6, 2017 (future)
Feb 6, 2018 (future)
Besides the distributions above, I will need additional funds in 2018, so
based on the SEPP rules (5 years or 59 1/2 whichever is greater)..is the earliest date that I can take another withdrawal without busting my SEPP on Sep 1, 2018 ?
Will I run into any problems because I’ll be taking 2 withdrawals in 2018, even though one withdrawal would be after turning 59 1/2 and met SEPP withdrawal requirements ?
(just want to confirm that I am eligible to withdraw any amount after hitting age 59 1/2..even though I already took one distribution earlier in 2018).
Thanks.2016-04-09 22:24, By: JasonT, IP: [184.108.40.206]
L2: Question on SEPP distributionYes, confirmed. As of 8/29/2018 you can take out any amount you wish as your SEPP has ended. You will get a different 1099R for distributions you take after 59.5 so there will be two 1099R forms to report on your 2018 return. You would only have to file a 5329 on the 1099R that contains code 1 in Box 7, but you probably have been doing this all along.2016-04-10 02:40, By: Alan S, IP: [220.127.116.11]
L3: Question on SEPP distributionThank you, Alan, for your response. Been following this forum/site for some years, and you have been a great resource. Appreciate it.2016-04-10 06:03, By: JasonT, IP: [18.104.22.168]
L3: Concurrent IRA Withdrawals During SEPP DistributionsI have an existing SEPP that I started receiving quarterly distributions from in 4/2014. My birth date is 1/15/1958. I know I need to continue the SEPP distributions until 1/2019 (60 payments). I will need additional funds in 2017 after I turn 59 1/2. Can I make withdrawals outside of my 72t distributions after 7/2017?2016-06-30 00:05, By: Karl B., IP: [22.214.171.124]
L4: Concurrent IRA Withdrawals During SEPP DistributionsNot from the accounts used to fund the SEPP plan. If you have an IRA not used as part of the SEPP, you can make withdrawals from that account.2016-06-30 00:16, By: Gfw, IP: [126.96.36.199]
L4: Concurrent IRA Withdrawals During SEPP DistributionsIf you have followed this forum for very long, you would have seen previous posts and comments about a recommendation of having two separate IRAs. One would be used for your SEPP distributions and the other could be used for just the case that you are experiencing.2016-06-30 15:05, By: Red Baron, IP: [188.8.131.52]