SEPP Withdrawal Date(s)

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L1: SEPP Withdrawal Date(s)If one were to set up an SEPP for annual distributions, let’s say the first distribution is 07/15/2010. Presumably one cannot make the second annual distribution before 07/15/2011. How much latitude if any is there in the second and subsequent distribution dates. If there is none, ie each and every distrubition must be made on exactly 07/15 of each subsequent year then what happens for things like holidays and weekends or if the distribution order is in place for that date but the final physical transfer doesn’t take place until later? If there is a window of time not before the 07/15 date how long is a reasonable time for that window, ie would 7/18 work and if so would subsequent year distributions be no sooner than that date????2010-04-21 21:36, By: ralph, IP: []
L2: SEPP Withdrawal Date(s)These are calendar year plans, therefore the only thing that matters is that your total annual distributions match the requirement. It does not matter which date you take those distributions. The date of 7/15 only means that your plan started on that date, it has no other significance. You could take your 2011 distribution in any frequency you wished and on any date that you wished. Of course, there are dates to set up your distributions that allow you time to correct errors and there are other planning implications as well. Obviously, if you choose to take your entire annual distribution in January, your budgeting is going to have to be very precise, since it will be another year before you can take more money out without busting the plan.2010-04-21 21:57, By: Alan S., IP: []

L3: SEPP Withdrawal Date(s)Thank you so much for the info. So if I understand this correctly, given that the SEPP is a calendar year plan, it the annual distribution is $60,000 and the plan starts on 7/15/2010, then $ 60,000 can be withdrawn in each calendar year at any frequency. I thought I read somewhere if you set up annual withdrawals (or whatever frequency you selected committed you to exactly thatfrequency in the future)you could only make annual withdrawals, ie onedistributions in the calendar year. Is this incorrect?2010-04-21 22:45, By: ralph, IP: []

L4: SEPP Withdrawal Date(s)100% INCORRECT.There is no requirement for consistency as to the frequency of distributions. If the ANNUAL AMOUNT is $ 60,000, thenyou can take $ 60,000 at $ 5,000 per month, $ 15,000 four times a year in any 4 months, $ 30,000 twice a year in any 2 months, or $ 60,000 in any month of every calendar year.In the first calendar year, say 2010, you can take EITHER $ 60,000OR $ 30,000at any time before 12/31/2010( as long as some payment is taken in July to be eligible for 6/12 of the annual amount.You can change the frequency in each calendaryear, andcan change thefrequency during any year, so long as your ANNUAL DISTRIBUTION totals exactly $ 60,000, and your 2010 distribution totals $ 60,000 or $ 30,000.2010-04-21 23:29, By: dlzallestaxes, IP: []

L5: SEPP Withdrawal Date(s)Thank you for complete and consise explanation. This forum is great!2010-04-21 23:47, By: ralphd, IP: []