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SEPP Depletion

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Byjean

L1: SEPP DepletionI began withdrawing substantially equal payments in 2001, at age 53 after retiring from my employer. My funds are now substantially depleted due to a loss in the year 2002.I made a one time change in 2003 to reduce my payments and prolong the life of my IRA.Nevertheless, my funds will be exhausted in 2006 before I reach age 59-1/2.Can you clarify Revenue Ruling 2002-62 regarding plans that run out of money not being subject to the 10% penalty?2006-03-28 14:07, By: Jean, IP: [205.235.119.83]
L2: SEPP DepletionHi Jean:
What can be said … the bad news is you’re running out of money. The good news is there is no penalty for this happening. In fact, as best I remember, before RR 2002-62, running out of money has never been considered a “bust” for a SEPP Plan.
Jim2006-03-28 14:16, By: Jim, IP: [70.184.1.35]

L2: SEPP DepletionIf (in 2003) you switched to the Minimum Distribution Method which requires recalculation each year, how could the fund be depleted?
The divisor doesn’t reach 1 until aboutage 115.
2006-03-28 14:45, By: Gfw, IP: [172.16.1.78]

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