SEPP busted by change at Credit Union

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L1: SEPP busted by change at Credit UnionMy monthly payment amortized schedule based SEPP plan has been busted by a change in interest payments on my CD to my IRA share account. When I started my plan the CU paid interest monthly. They then changed to a quarterly interest payment at the end of Jan., Apr., July and Oct.. Unbeknownst to me this change would have caused a problem eventually BUT then the CU changed the quarterly payments to a calendar year schedule Mar., Jun., Sep., Dec.. This change caused the problem of not having enough money in my IRA share account to make my SEPP payments to occur much sooner.At the end of last year they could not make my December payment on Dec. 27 asscheduledand the payment was deferred to January 2013 after the Interest had been deposited into my IRA share account on Dec. 31, 2012.
I have asked the CU to write a letter stating they caused this to happen without my knowledge and to allow me to withdraw a portion of my CD without penalty to prevent the problem from occuring again. I can show with a spreadsheet that it would not have happened if the CU had not changed to quarterly interest payments.
Your thoughts and suggestions please.2013-03-20 06:58, By: twag, IP: []

L2: SEPP busted by change at Credit UnionI think you have a problem and a busted plan.
When you failed to take the December payment which was probably required to meet the planned annual distribution for 2012, you busted your plan.
While there have been allowances made by the IRS for administrative errors in certain cases, your situation is not really an administrative error – merely a bad investment choice.
You could also have made a withdrawal from the CD and paid the penalty to avoid busting the plan, but you chose not to take that route.
2013-03-20 09:26, By: Gfw, IP: []

L3: SEPP busted by change at Credit UnionThis also highlights the danger of setting up a SEPP payment plan where a December payment is so late in the month, that a problem (like wrong amount, or no payment) may not be noticed in time tocorrect itbeforethe calendar year ends. KEN2013-03-20 15:42, By: Ken, IP: []