Setting up new SEPP (T Rowe Price)
L1: Setting up new SAPP (T Rowe Price)
Hi I am 55 birthday 01/19/1958 this is a new SEPP,I amretiring on June 28th 2013 and I am having my lump sum rolled into a IRA with T Rowe Price and theydon’t setup SEPP accountsbut will be glad tosend what ever payment I ask for once I know what the right amount is. I plan on starting to draw off it in Sept. 2013 So a couple questions
Should I setup a cash account within the IRA and at the beginning of the year transfer enough money in there to cover that years allotmentthat my SEPP allows and draw off it each monthso I know I take the right amount each year.
Does the year start on the month I start drawing or does itre-start Jan 1st. If it Re-starts Jan 1st do i need to take out this years amount between Sept and Dec. say if I can take $18000.00 a year do I need to take it by the end of Dec. or if I dont have to but I wanted tocan I take thatamount to count as year one of the five year rule.
Has anyone else used T Trowe Price and if so how did it work out for you was there any problems with your 72t.
Hope this makes since am not to good at explaining myself.
Any help you all can give me will be much appreciated
Mike2013-06-20 18:31, By: born2glf, IP: [188.8.131.52]
L2: Setting up new SAPP (T Rowe Price)STOP !!!!!!!!!!!
Since you are 55, you probably do not need a SEPP 72-T. IMMEDIATELY go to your HR department and/or retirement plan administrator at work, and ask if your company’s plan allows PARTIAL WITHDRAWALS. If so, then DO NOT ROLLOVER YOUR 401-K OR COMPANY PENSION OR PROFIT-SHARING PLAN TO AN IRA. Look thru this website for all of the postings that explain why you do not need a SEPP 72-T.
ALSO, while you are meeting with HR, ask them if there is your company’s stock in the plan. If so, then ask them for the COMPANY STOCK COST ABSIS FOR NUA (Net Unrealized Appreciation of Employer Stock in a company Retirement Plan). Research this at irs.gov, or get J K Lasser YOUR INCOME Tax ($ 19.95) at any big box office supply or bok store. If your company stock has appreciated, you can save a fortune in taxes by using this tax provision if you do it properly. See a financial advisor or tax professional who understands these provisions.
Also, read thru similar postings on this website about setting up a SEPP 72-T only if the above 2 approaches are not available to you, because you need to understand the basics, and details, before you do anything.
2013-06-20 19:21, By: dlzallestaxes, IP: [184.108.40.206]
L3: Setting up new SAPP (T Rowe Price)dlzallestaxes:
no partial withdraw must take lump sum or there annuityand it has no cost of living increase.2013-06-20 21:52, By: born2glf, IP: [220.127.116.11]
L4: Setting up new SAPP (T Rowe Price)Mike,
The SEPP must run the longer of 5 years, or until you turn 59.5. Therefore, you will have what’s termed a 5 year SEPP running until Sept. 2018 and well after you turn 59.5. You must take an equivilent of 60 monthly payments during this 5 year period. While you have an option in the first year of taking a 4 month pro-rated (4 monthly payments) amount, or the entire annual amount in this first year. Should you take the entire amount in this first year you won’t be able to take anything in 2018, because you will have taken 5 annual payments. 2013, 2014, 2015, 2016, and 2017. I highly recommend you take only the pro-rated portion in this first year.
Go to the home page at the bottom left and read planning pointers, and all links associated for further understanding. Following this site and forum for 5 plus years prior to starting my SEPP gave me the confidence to do this on my own. There’s great people like DLZ trying to save you from what could have been an egregious error had you qualified, and many others to help. You have a short time to get up to speed.
I would suggest once you enter your information in the calculator that you post up for a double check by others. The people may catch even the smallest mistake which can cost 10% of a lot of money! Good luck, and I look forward to your responses and questions.
Scott2013-06-20 22:23, By: Scott, IP: [18.104.22.168]
L5: Setting up new SAPP (T Rowe Price)Thanks Scott for your input. I will calculate and post once I get my final numbers in July,
The money wont roll over till late Aug or Sept the company I work for moves very slowly when it comes to these things. Our maybe its the third party company that handle all of this for them anyway I will post onceI see my final numbers.
Mike2013-06-20 23:38, By: born2glf, IP: [22.214.171.124]
L6: Setting up new SAPP (T Rowe Price)It appears that you checked, and the company does not provide for “partial withdrawals”. Just in case, have you asked for and read their plan document, which they must give you ?
Did you ask about NUA ?
Is your only option their annuity with no cost of living increases ?
Have you read the pointers from this website yet to understand how a SEPP works ?
Have you done any preliminary calculations based upon whatever your plan is worth now ?
Do you understand that YOU do not make the decision as to how much you want to take each calendar year. IT IS A CALCULATION BASED UPON SPECIFIC FACTORS. When you, or anyone, puts those factors into the “calculator”, it will tell you how much you can expect to receive. Is the $18,000 what you want or need,or is that a rough figure from the calculation ?
Also, why are you insisting that you want to go to T ROWE PRICE, especially since you said that you do not think that they understand SEPP 72-T plans. Why not consider Vanguard, which has a separate department devoted to it, and usually has lower fees, or any other mutual fund or broker who does understand this area ?2013-06-21 00:41, By: dlzallestaxes, IP: [126.96.36.199]