SEPP distribution schedule/amount
L1: SEPP distribution schedule/amountI retired last year and am planning to start my SEPP this year (taking monthly distributions based on the amortization method) with the first distribution in March. My question is whether the 2010 distributions need to add up to the total annual commitment or whether each month’s distribution for 2010 should be 1/12 of the annual commitment? Any help you could provide would be appreciated.2011-01-05 18:43, By: K9luvr, IP: [188.8.131.52]
L2: SEPP distribution schedule/amountYou stated your “2010 distributions” and I’m assuming that you mean your “2011 distributions” can be either. There have been posts similar to your question. The answer has been that during the first year you have the option of either taking the full amount calculated for the year or 10/12’s (for starting in March) of the amount calculated.2011-01-05 19:02, By: Chuck W., IP: [184.108.40.206]
L3: SEPP distribution schedule/amountThanks for you quick reply. Yes, I meant 2011 in the original post. It’s great to have the option of full or partial distribution for the first year. In your experience is there advantage/disadvantage to either choice with respect to how the agency would view the situation?2011-01-05 19:14, By: K9luvr, IP: [220.127.116.11]
L4: SEPP distribution schedule/amountThe IRS couldn’t care less (or more).
Whatever your cash needs are, and your tax picture or the first year, are the determining factors. You might want to talk to a tax or financial advisor ( which is different than an investment advisor, whose primary expertise is how to invest the money).2011-01-05 19:40, By: dlzallestaxes, IP: [18.104.22.168]