SEPP New Withdrawals
L1: SEPP New Withdrawals
First off, This is a great Site! THANK YOU
I am getting ready to start my SEPP withdrawals on 9/29/11. My birth date is 08/1957.
I have reviewed the SEPP calculator, but am a little confused on life expectancy rates and amoritization rates.
Also, do I have to take a full year payment in 2011, or can I prorate the 3 months for 2011.
Thank you all!
2011-09-28 22:13, By: Steve, IP: [18.104.22.168]
L2: SEPP New Withdrawals
How sure are you that your IRA Trustee/Custodian will cut the withdrawal check tomorrow? If for some reason they delay until Monday, you are in a new month with a different interest rate and different calculation results.
If you start the plan in September (date of 1st withdrawal) then your options would be to take a full annual withdrawal or 4/12s (Sept, Oct, Noc & Dec) of the annual.
If they do get the check cut tomorrow, the first thing that I would do is move the withdrawal date to the 5th or 6th of the month. Having a withdrawal date around the 29th at the end of the year leaves no room for errors.
In terms of the life expectancy and annuitization rates, all you have to worry about is having the proper starting balance, the proper age (your age as of 12/31/2011) and the proper interest rate. Make suire that you read the help file on the calculator
Based on your questions, are you really sure that you are ready to start a SEPP tomorrow?
Have you read our Planning Pointershttp://72t.net/72t/Planning/Pointers
2011-09-28 23:08, By: Gfw, IP: [22.214.171.124]