starting SEPP mid year.
L1: starting SEPP mid year.Hi, Thanks for all the great information!! I plan to start my SEPP in July 2011. Can I movefunds to/fromthe IRA I plan to use to fund my IRAduring the first 6 months of 2011 (before I start my SEPP on 7/1/11) orwill this cause confusion and a possible audit from the IRS?Thanks again, Bob.2010-06-27 20:59, By: bob85364, IP: [220.127.116.11]
L2: starting SEPP mid year.Activity before you start a SEPP 72-T does not matter.As a matter of fact, use the reverse calculation on this website to determine the balance that you will need for the desired annual distributions. Then move the account excess to another account for use in the future for emergencies,or a 2nd SEPP 72-T.2010-06-27 21:58, By: dlzallestaxes, IP: [18.104.22.168]
L3: starting SEPP mid year.dlz is correct.When you move the funds, you should use a direct TT transfer. If you move the funds by an indirect rollover, you will exhaust your permitted one rollover per 12 months for the account that distributes the funds AND the account that receives the funds. You should preserve the option for doing an indirect rollover for your SEPP plan.For example, if you or your institution distributes too much, you can roll the funds back to the IRA and prevent a busted SEPP. But if you exhausted that rollover before your plan even began, you would be out of luck.2010-06-28 01:58, By: Alan S., IP: [22.214.171.124]