SEPP Distribution to Romania
L1: SEPP Distribution to RomaniaDear all,
I want to set up a NEW SEPP; however, I am an expat U.S. citizen living in Romania. The Rollover IRA I want to use is with Fidelity. Unfortunately, Fidelity states they cannot help me set a SEPP plan up because they have no way to report the distributions to IRS. Does anyone on the forum:
1) Know of a financial planning firm that can setup an SEPP plan for an expat in Romania (A developing country with financial restrictions)?
2) Can I set up the SEPP plan, distribution, and tax reporting myself?
3) Any other recommendations for my situation?
I was born on May 18th, 1959. My target distribution date is January 15th, 2018.
2017-11-08 07:22, By: Expat in Romania, IP: [22.214.171.124]
L2: SEPP Distribution to RomaniaBetter talk to someone else at Fidelity. There is no special reporting for a SEPP plan, so they should report distributions on a 1099R. There might be a 30% withholding requirement unless a tax treaty with Romania states otherwise.
More to the point, why would you want to set up a rigid 5 year SEPP when your first distribution would only be 10 months shy of reaching 59.5? You would probably be better off just taking distributions for the minimum amount you can before 59.5 and pay the penalty. Once 11/18/2018 arrives your distributions will be penalty free and you would not have another 4 years of forced SEPP distributions.
2017-11-09 04:30, By: Alan S, IP: [126.96.36.199]