Stop or changing 72t before 59 1/2

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L1: Stop or changing 72t before 59 1/2Existing SEPP 4th distribution 1/5/15, D.OB. April 1961.
Goal: Reduce amount of annual distribution.
Note: Made change to Single Life Expectancyin 2012 (2nd year).
Question: Is there a rational I could use for a “private letter ruling” to lower distribution amount further?2015-01-05 23:00, By: sogriz, IP: []

L2: Stop or changing 72t before 59 1/2None that I know of. Did you make the distribution today ? If not, consider stopping the plan, and paying the 10% on cumulative distributions. How much were 1st 3 distributions ?
Then start a new plan, and split your account into 2 accounts using the reversecalculator on this website.2015-01-05 23:53, By: dlzallestaxes, IP: []

L2: Stop or changing 72t before 59 1/2I assume your 2012 change was to the RMD method using the single life table. If so, there are no other ways to reduce your distribution without busting the plan. Since you are still 5 distribution years shy of the plan termination, if your desired distribution is far less than your current distribution, perhaps you should report a voluntary bust of the plan effective 12/31/2014. If your desired distribution is only somewhat less than your current one, then perhaps you follow through with the current plan.
If you have other income that stops (perhaps job loss) in the future, you could start a new plan, but in the meantime busting the plan would prevent you from drawing down your IRA at a higher tax rate than desirable due to the combined income.
And if youwould have qualified forany other penalty exceptions however small in amount, you could still amend your 2011-2013 returns to claim the other penalty exception since you will have forfeited the SEPP exception. You would have to file a 1040X with revised 5329 to claim any new exceptions.2015-01-06 00:00, By: Alan S, IP: []

L3: Stop or changing 72t before 59 1/2Thank you for the reply. I don’t want to bust the plan. My plan “B” has always been to re-allocate the distribution (when I don’t need the $) to fund Roth IRA’s for my wife and myself. Since distribution this year is $12,500it works out well for funding 2 IRA’s.2015-01-06 12:36, By: sogriz, IP: []

L4: Stop or changing 72t before 59 1/2By funding the Roth contributions, I assume you mean regular contributions and that you and/or your spouse has earned income from which to make these contributions.
It is also possible to convert to a Roth within the SEPP plan but the risk for confusion and busting the plan when incorporating this approach means most people should not consider this option.2015-01-07 01:05, By: Alan S., IP: []

L4: Stop or changing 72t before 59 1/2If you have enough earned income, but want to reduce your taxes when you don’t need the money, then you can consider making Deductible IRA contributions, or 401-K contributions. Or you can compare the advantages and disadvantages of these deductible contributions vs. ROTH contributions, or conversions.2015-01-07 07:07, By: dlzallestaxes, IP: []