SEPP Final Countdown

You are here:
< Back

L1: SEPP Final Countdown
First, Thank you to everyone who were so helpful in helping me with the info I needed to take advantage of the SEPP plan.
DOB 10/24/1958
Date of first disbursement (full amount): 3/20/2013
2nd: 3/20/2014
3rd: 3/20/2015
4th: 3/20/2016
5th: 3/20/2017
Am I correct in understanding that I’m okay to wait until April 25th, 2018 (the day after I turn 59.5) to begin, or not, withdrawing from my IRA?
2018-01-20 20:14, By: Thomas B., IP: []

L2: SEPP Final Countdown
Yes. Your SEPP will terminate automatically then since it will be > 60 months from your first distribution, and will also be after you are 59 1/2.
You will be able to take any amount you want after that date, or take -0-. Your withdrawals will still be subject to income taxes, but not subject to the 10% early distribution penalty because it will no longer be “early”.
2018-01-20 20:36, By: dlzallestaxes, IP: []

L3: SEPP Final Countdown
I don’t think you intended to take a 3/20/18 distribution, but it is marginally beneficial if you didn’t and waited until after your plan ends. That way your 1099R will be coded 7 and you will not need to file a 5329 and also no risk of taking out the wrong amount or of drawing down your IRA balance unnecessarily.
There is no special filing requirement when your SEPP ends. Just report the distributions that you actually do take as usual, and keep your plan documentation for at least 3 more years just so you have it in the unlikely event the IRS inquires about any prior distributions.
2018-01-21 19:26, By: Alan S, IP: []

L4: SEPP Final Countdown
Thank you, dlz & Alan S! Again, I am so thankful to the guidance & info I received from this site. Being able to use my IRA over the past 5 years has made a huge difference to our quality of life, while at the same time watching that IRA more than double in value is icing on the cake!
2018-01-21 22:32, By: Thomas B., IP: []