Starting a SEPP

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L1: Starting a SEPP Hi,
I want to start a new SEPP. I am doing my taxes now. Can I make (and deduct on my 2015 taxes)a contribution to my SEP-IRA for tax year 2015 now and then start a SEPP later this year with first annual payment this year, say in August. Is this permissible? If so, should I use balance as of 12/31/15 as basis for the distribution calculations? My birthday is 11/26/62.
MCH2016-03-01 01:07, By: MCH, IP: []

L2: Starting a SEPP You can make the 2015 SEP contribution and start a 72t plan anytime afterwards. But once you start the 72t plan, you cannot make any more contributions to the account without busting your plan. Therefore, if you plan to make future SEP IRA contributions, you should transfer the SEP IRA account balance into a new TIRA account after making the 2015 contribution, and then start your 72t plan from the new IRA. Your account balance for calculating the 72t distributions would have to be the new IRA balance, probably a balance at the end of any month prior to the month of your first 72t distribution. You could then continue to make new SEP IRA contributions to the original SEP account and that account would have to be kept totally separate from your 72t plan IRA account.2016-03-01 20:03, By: Alan S, IP: []