Seperation from Service

L1: Seperation from ServiceGentlemen,
I have finally seperated from service, and am collecting unemployment until my pension goes into effect on 6/1/2012. I’m going to roll over $277,000 into a traditional IRA from the Carpenters union, and create a SEPP to provide additional income to supplement my pension hopefully to start 9-1-2012. I will take a full years distribution. Please let me know if I’ve got this right?
Age 52 10-25-1960 (plan year)
Spouse 9-17-62 (don’t see any bearing here)
$277,000
Interest (hopefully) 1.30%
Total $8223.46 per year
Monthly $685.29 (within 2 cents of total $8223.48) is this ok?
If interest rates are to rise substantially in the future could there be a recalculation?2012-03-15 12:48, By: Scott, IP: [71.142.133.240]

L2: Seperation from ServiceIf I use DoB of 10-25-1960, $277,000 as a starting balance and 1.3% as the interest rate, I come up with an annual distribution of $10,556.81 (see below) using the amortization method.
Where did you get $8,233.46?
The plan year starts with the date of the 1st distribution.
In terms of annual recalculation, read the following… http://72t.net/Articles/ArticleShow.aspx?WA=80102b87-c02e-4b0a-9296-6b42bd2a56a6

SEPP Plan Assumptions

Owner Born
10/25/1960

Plan Age
52

Total IRA Accounts
$277,000

SEPP Plan Account
$277,000

SEPP Interest Rate
1.30%

Investment Interest Rate
4.00%

1st Distribution Date
3/25/2012

Date Age 59.5
4/25/2020

5 Year Date
3/25/2017

1st Modification Date
4/26/2020

2012-03-15 18:04, By: gfw, IP: [205.178.73.77]

L3: Seperation from ServiceThank you for your response GFW. My error was in checking the use uniform table box. I prefer your correction, and it will make a big difference in our comfort.
The only difference I see in your post is my beginning date. I can’t start the rollover until I receive my first pension check which should be 6/1/2012.
I was planning on using Fidelity as my custodian. Any comments on them?
Also, how close must I be at the end of the year? Can I be 5 cents off?2012-03-15 19:17, By: Scott, IP: [71.142.132.18]

L4: Seperation from ServiceNo personal experience with Fidelity, but they are probably like most other custodians – they will manage your money, but want no part of the SEPP. What that means is that you may have to file a IRS Form 5329 with you 1040 – no big deal.
Make sure that you read through our planning pointers for some helpful hints.
I just used the default date, your date and my date will result in teh same annual amount.
Please feel free to post any additional questions or comments and good luck on your SEPP
2012-03-15 20:05, By: Gfw, IP: [205.178.73.77]