sepp annual pmt. date
L1: sepp annual pmt. date
I started a sepp in 2011 by taking one annual pmt in May. I am going to continue it as annual payments but I am wondering if I can change when it occurs during the year. Do I have to take my 2012 payment in May or can I take it in a different month.
2011-11-18 21:50, By: Joe, IP: [18.104.22.168]
L2: sepp annual pmt. date
You are not restricted to taking an annual payment. You can take any amount at any time as long as you take the calculated annual amount by 12/31.
2011-11-18 21:56, By: Gfw, IP: [22.214.171.124]
L3: sepp annual pmt. date
If you are already thinking of having “month creep” (to earlier annual month than May) after year one, that may mean your are spending your annual allotment much faster (perhaps 4 months faster?) than you should. Once you move as early as JANUARY, there
is no more wiggle room to bail you out any earlier in the nextyear. I would suggest changing to either Qtrly or even monthly, in January 2012. I started my first SEPP with Qtrly in 2006, and it was OK, but after 2 yrs, I chgd it to monthly in Jan 2008 (with
Fed & State withholding taken out)and that method was much more like managing money froma paycheck, than having a wad of cash that had to last 3 months, and I no longer had to file qtrly estimates and qtrly payments to fed and state. Just my experience.
2011-11-19 04:17, By: Ken, IP: [126.96.36.199]