SEPP PLAN

L1: SEPP PLANMy husband had to take early retirement 6 years ago age 51. He took his retirement as a lump sum into an IRA. We started taking SEPP withdrawals under the annuitization method for one year, then made a change to the minimum distribution method. Since then I have been calculating the withdrawal on an annual basis using the ending balance on the IRA on 12/31/##, and making the withdrawal in the new year. We have an accountant file the necessary form with our tax return stating that we are making SEPP withdrawals.
Are we doing this correctly?2013-01-15 03:48, By: Nicki, IP: [69.234.193.167]

L2: SEPP PLANIt sounds like the answer is yes.
But the yes answer also makes the assumption that you have used your husband’s attained age as of each 12/31 of each calculation year.
Example… For 2012 you would have used the balance as of 12/31/2011 and your husband’s attained age as of 12/31/2012.
2013-01-15 13:03, By: Gfw, IP: [205.178.67.189]

L3: SEPP PLANI have been using the balance at the end of the year and the age he will attain thfollowing year. I am trying to calculate the minimum distribution for 2013, but the calculator has changed. It does not ask for his, or my age, just are date of birth. It also keeps giving me an error code of ##.## or 0? I am entering full monetary values, eg 250,000.00.
Would somebody be able to calculate the minimum distribution figure for me if I gave them the IRA balance, my husbands’ age and the right interest rate? This is very frustrating, I’m usually able to just plug in the numbers! My husband turns 58 in May, so we only have a couple more withdrawals we have to make under the SEPP plan.2013-01-15 14:36, By: Nicki, IP: [69.234.193.167]

L4: SEPP PLANI think that the change was made from age to date of birth because of the response above which reminded you that the age to use is for the year after the year-end for which the balance is used. This change is to avoid the possibility of someone using the wrong age.
If you give us the figures, someone will help you with the calculation. Also, indicate the date of the first distribution so that we can also tell you when the plan ends, and your options in that year.2013-01-15 15:23, By: dlzallestaxes, IP: [71.175.100.168]

L5: SEPP PLANMy husbands date of birth is: 5/12/1955
the date of the first distribution was 2/7/2007
the SEPP was initially calculated using the amortization method.
we made a one time change to the minimum distribution method in January 2009′ using the balance on the account as at 12/31/2008. And my husbands age as at 5/12/2009.
I need to calculate the correct distribution to take this year 2013, based on the balance as at 12/31/2012 – $256,182.99, my husband will be 58 on 5/12/2013.
Every time I put these figures in the SEPP calculator and select MDR it tells me I have not put ##.## values and it will not calculate. 2013-01-19 23:42, By: Nicki, IP: [69.234.193.167]

L6: SEPP PLANNikki- It worked for me. I then tried it with two digit year on birth dates, and it would not compute, so you may not have been entering 4 digit year YYYY format it requires for 1955. I used the 72t SEPP calculator… There was no way to enter the first year of your plan, so it thinks this is the first yaer, so ignore the dates it lists for your five year minimum run. Here it what it got: Try it again now.
01/01/2013 – 01/31/2013: 1.14% | 02/01/2013 – 02/28/2013: 1.14% | 03/01/2013 – 03/31/2013: 1.20%

Calculation Results
Please correct the following errors:

Enter Date as MM/D/YYYY

Owner Born

Beneficiary Born

SEPP Method

Total IRA Value

Amount to SEPP Plan

1st Payment Date

SEPP Interest Rate

Investment Rate

IRS Penalty Rate

Use Uniform Table

Use Joint Table

Pro-Rate 1st Year

SEPP Plan Assumptions

Owner Born
5/12/1955

Plan Age
58

Total IRA Accounts
$256,183

SEPP Plan Account
$256,183

SEPP Interest Rate
1.14%

Investment Interest Rate
4.00%

1st Distribution Date
1/29/2013

Date Age 59.5
11/12/2014

5 Year Date
1/29/2018

1st Modification Date
1/30/2018

Minimum Distribution Method

Distribution Factor
27.000

Initial SEPP Payment
$9,488.26

2013-01-20 04:41, By: Ken, IP: [100.0.32.145]

L7: SEPP PLANI put in a 4 digit year, but I noticed that your claculator did not ask for my date of birth? I did use the 72t SEPP calculator. I will try it again. If I can’t get it to calculate for me should I just use $9,488.26, and do I have to take the distribution on 1/29/13?
Am I right in thinking that we will have reached our 5 year, and 59 1/2 in 2014, so will have to make a final distribution in 2014, or will we have to make one more distribution in 2015?
2013-01-22 02:10, By: Nicki, IP: [69.234.193.167]

L8: SEPP PLANNikki, If you are using the SEPP calculator on this site, go to it again, and just press CALCULATE with the info that is already on the screen from last person who used it (not necessarily yours) and you will see the “results” areabelow, which hasinfo that is “similar” to the details I tried to copy using your figures in previous post. It does not list the beneficiary age in the results, and it shows all three calculations, so you just choose teh Minimum Distribution info for what you are trying to do when it is your info. Then try going back and enter your info and try it. If you choose “Joint Table– NO” then your age as spouse of person running the SEPP is not an issue in the calculations, as I recall. Most people do it that way.

By the way, if you have been doing the annual Minimum Distribution recalc for spouse each year for past 4 years or so, why are you so confused this year?2013-01-22 04:17, By: Ken, IP: [100.0.32.145]

L9: SEPP PLANHi Ken
Thank you for walking me through how to use your new calculator format. I entered my figures and now have the MD to take on1/29/13 (same as the figure you got on the calculator).
Question?
As my husband will turn 59 1/2 on 11/12/14, will we have to make a distribution in 2015, or will be freed from the SEPP distribution we will make in 2014 will be the 7th distribution made.2013-01-26 21:03, By: Nicki, IP: [108.254.213.87]

L10: SEPP PLANNikki, Since you said he is already well past the 5 year minimum of payments taken, he does not need to take any more required withdrawals after he reaches age 59 1/2. Use the “first modification date” calculator on this site and plug in your infoto see what it yields for that date. Shd say it isthe day after he turns 59 1/2.2013-01-27 02:49, By: Ken, IP: [100.0.32.145]

L7: SEPP PLANI put in a 4 digit year, but I noticed that your claculator did not ask for my date of birth? I did use the 72t SEPP calculator. I will try it again. If I can’t get it to calculate for me should I just use $9,488.26, and do I have to take the distribution on 1/29/13?
Am I right in thinking that we will have reached our 5 year, and 59 1/2 in 2014, so will have to make a final distribution in 2014, or will we have to make one more distribution in 2015?
2013-01-22 02:10, By: Nicki, IP: [69.234.193.167]

L8: SEPP PLANHe is not required to take any distribution in 2015, and has several options as to what he has to take, or can take in 2014. The maximum he can take in 2014 is his annual distribution under the plan, thru age 59 1/2.In Dec 2014 his plan terminates because he will be 59 1/2 in Nov 2014, and has been in the plan > 5 years, so he could take -0 or his entire balance in Dec 2012. Or are you looking to take -0- in 2014 ?2013-01-27 04:17, By: dlzallestaxes, IP: [71.175.100.168]