Sepp Distribution

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L1: Sepp DistributionIf I use the sepp calc. on your website to figure the sepp and print out the result for my records will theIRS except it in the case of an audit. I was also wondering if I started a sepp in 2010 and then another in 2011 when the first one ended I would be 61. Since was over the age of 59.5 but the other sepp had one year to go could I draw from the first one and not have to pay the 10%penalty even thought I had a year to go on the second one. Thanks2010-01-27 18:34, By: wsmith, IP: []
L2: Sepp DistributionThere is a documentation sheet to use on this site, and the IRS does not specify a format. The key is that the assumptions and calculations must be correct. If you do them correctly, the IRS would not have a problem.Not sure I follow your next question. It appears you want to have two separate SEPP plans started a year apart. Each must last the longer of 5 years or until you are 59.5. If the first plan ended at 61, you can then take whatever amount you wish out of the account penalty free. But since you MUST continue the second plan until 62, you may not wish to keep drawing down the first IRA since that SEPP ended at 61. Having ended at 61, it can provide some protection for the second SEPP if you need more money than you are getting from the second one.Some people have more than one SEPP plan, but most start the second one quite a bit later than the first one. You may have a reason for not setting up the first one to provide a large enough amount, but you apparently are only working with a 5 year period here.2010-01-27 23:26, By: Alan S., IP: []