Requirements for starting the SEPP

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L1: Requirements for starting the SEPP
I’ve read all the posts on this great site, but haven’t been able to determine if there are any form submission requirements to the IRS, stating my intentions and plan for commencing my SEPP. From what I can tell, all I need to do is start making my withdrawals and then state on my annual income tax filing that they are a part of an SEPP which exempts me from early withdrawal penalties. Is that correct? I have all the details of my plan together and documented, but figure that is only for my benefit and could be used in the event the IRS questions me. Am I understanding this correctly that I don’t have to submit any forms to the IRS to start my SEPP? (DOB 6/5/1962, expected 1st distribution: today 1/10/2018)
2018-01-10 19:13, By: KentC, IP: []

L2: Requirements for starting the SEPP
Correct. You do not need to submit anything to the IRS unless they ask for it, which could be far into the future. Check the planning pointers on this site under the 72t72q tab at the top of the page and there is a section that explains what documentation to keep until well after the plan has ended. A copy of a dated IRA statement for the plan balance on which your calcs were made should also be retained as part of the documentation.
When you file your return, you will almost surely have to file a Form 5329 to claim the SEPP exception code 02 because the IRA custodian will likely issue the 1099R with Code 1. Otherwise, the IRA distributions are reported on line 15 of Form 1040 in the same manner as non SEPP IRA distributions.
There is similarly no special filing needed when the plan ends.
2018-01-10 21:16, By: Alan S, IP: []

L2: Requirements for starting the SEPP
As Alan mentions above about the distribution code 2 on the 1099, you may just want to call your brokerage/mutual fund company and see how they will code the 1099.
2018-01-11 01:48, By: brkr12002, IP: []