SEPP Changes

L1: SEPP ChangesI am a recently retired federal employee and have the Thrift Savings Plan (TSP) which has essentially the same rules as an IRA. I am 46 years old and selected SEPP payments. My monthly distributions are low enough so that I never reduce my account and only use interest earned. Clearly it will last my lifetime and I should not have to pay the 10% early penalty. Once a year the TSP allows me to change my monthly payments. If the interest rate being paid (Treasury Bills) goes up substantially, I might want to increase my monthly distribution correspondingly. Can I take advantage of that if I follow the same courese of making sure that these monthly payments will last a lifetime? Thank you. 2005-05-27 06:43, By: Mick, IP: [70.108.129.17]
L2: SEPP ChangesShort answer… No.
If you established a SEPP then the payment was calculated based on one one of three acceptable methods and the assumptions were identified when the plan was created. The assumptions may not change after the plan is initiated.
You may want to spend a little time browsing the FAQ section and for more detailed information on what you can or can’t do, you may want to acquire Bill’s book.2005-05-27 06:48, By: Gfw, IP: [172.16.1.73]

L2: SEPP ChangesAlthough it wasn’t the answer I was hoping to get, thank you for the quick reply 2005-05-27 06:52, By: Mick, IP: [70.108.129.17]

L2: SEPP ChangesAlso remember that your SEPP has nothing to do with actual earnings – the rate used for your calculations – at a maximum – should have been no higher than 120% of the published Federal Mid-Term Rate for either of the 2 months that preceded the date of the 1st payment.2005-05-27 11:37, By: Gfw, IP: [24.148.48.31]