SEPP and additional medical withdrawal

L1: SEPP and additional medical withdrawalI have a client who has been on SEPP for several years. They want to take out an additional withdrawal under the exception for medical expenses exceeding 7.5% of AGI. If they take this additional withdrawal, will this withdrawal make the previous withdrawals subject to the 10% penalty?
I cannot find any clear ruling on this subject.2005-06-28 08:08, By: RCA, IP: [66.42.140.168]

L2: SEPP and additional medical withdrawalActually, there is no clear answer.
The code (72(t)(4) CHANGE IN SUBSTANTIALLY EQUAL PAYMENTS) is pretty clear by limiting the modification exception to death or disability.
Then there is Publication 590 which seems to cloud the issue by stating that The payments will not be subject to the 10% additional tax if another exception applies or if the change is made because of your death or disability.”
After several discussions on this forum, we have concluded that the only clear way to find the answer is for someone to ask for a Private Letter Ruling from the IRS.
Good luck.2005-06-28 08:20, By: Gfw, IP: [172.16.1.78]