Roth IRAs and SEPPs

L1: Roth IRAs and SEPPsI have two (perhaps ignorant) questions regarding Roths and SEPPs:
1. Can one take substantially equal periodic payments (from whatever method: life expectancy, amortization, annuity, amortization with annual re-calculations, etc.) from a Roth IRA?
2. Are there anydisadvantages unique to taking SEPPs from a Roth IRA?
Thanks!2007-06-16 14:07, By: Geoffrey, IP: [66.113.30.2]

L2: Roth IRAs and SEPPsHello Geoffrey:
You may certainly launch a SEPP plan using a Roth IRA just as you might using a regular IRA. In fact regular IRAs are governed by IRC 408(a); ROTH IRAs are governed by IRC 408A; right next door. 408A says to treat a Roth IRA the same as a regular IRA unless there is overriding language in 408A. In the case of a SEPP plan the operative difference is going to be in the ordering rules. Thus the potential disadvantages:
1. 100% of your basis / contributions are going to come out 1st which are non-taxable when you actually might want taxable income to be creted.
2. When you run out of basis your earning come out next which are taxable when had you waited until age 59 1/2 these same earnings become tax free upon withdrawal.
TheBadger
wjstecker@wispertel.net
2007-06-17 06:53, By: TheBadger, IP: [72.42.67.77]