Startup timing

L1: Startup timingI am planning on starting a 72t in Jan 08 with one ofmy currentIRA”s, utilizing the Nov 07 rate, and my year end balance. I am also considering a seperate direct rollover from my 401K in January into a new IRA, in order to begin a second72t, also using the November rate and the rollover balance as my base.
My questions are:
1 – Will there be any issues to my intent to have two distinct 72t plans, as long as my first distribution dates are not on the same date in the same month?
2 – Will the Direct rollover balance, a few days before my first distribution, suffice for Plan 2. Are there any qualifiers to first have at leastamonth end balance statement?
As the best 120% rate presently coincides withJanuary distributions, my goal.is to completethe twofirst distributions by next month”s end.
Thank you, Bob

2007-12-24 15:28, By: car-tows, IP: [72.86.12.216]

L2: Startup timingBob,
It makes good sense to utilize the higher Nov rate because it will develop a higher payout given an identical account balance. The inverse of this is that you commit a lower account balance to produce a needed payout figure.
The other issue is whether to maintain two 72t plans properly documented, or set upa singleappropriate account balance needed to produce the optimal distribution and maintain a single 72t plan with other IRA accounts waiting in reserve. Your questions:
1) Should be no problems as long as your documentation is in order. If so, it would not even matter if you received the distributions on the same date for each separate 72t plan. You just need to be absolutely sure never to mix up these separate plans.
2) No such waiting requirement. You can use the opening balance as long as you make a copy of the balanceshowing the date of such statement. And the subject date must obviously be prior to the receipt date of your initial distribution.This applies separately to each 72t plan.
With 5 weeks you probably have the time to create a single plan rather than two independent plans. That might reduce the number of variables that couldlead to a busted SEPP.

2007-12-24 18:28, By: Alan S., IP: [24.116.165.60]

L2: Startup timingAlan, Thanks for your reply.
A couple more questions:
From what I have read, am I correct that I can take the annual distribution at any time of the year and in a single annual distribution, opposed to Quarterly/Monthly?
My 59.5 month is mid 2013, but my 5 yearly distributions run through 2012. If I take another distribution in 2013 on or prior to my 59.5 date, I am interpreting that the amount would still be the annual SEPP amount and if after I can take any amount. Am I right and what if I choose to do both, does that have any negativeimpact?
Thanks,
Bob

2008-01-03 12:59, By: car-tows, IP: [72.86.12.216]