L1: stub year
Firstly, thanks so much for this website! I am 55 years old (5/11/56) and would like to start a SEPP program this month (Oct. 2011)as my unemployment benefits are about to run out and need to replace the income. It’s been a tough haul due to economic conditions,
but thank goodness I have a SEPP to fall back on. Vanguard is the trustee and I have already set up banking information for transfers for the SEPP. I have purchased the practical guide to substantially equal periodic payments and ready it thoroughly once through
with additional readings of certains sections of interest. I think I have a reasonably good grasp on the concepts and how to go about this. However, I am a bit unclear on a couple of items.
2011-10-09 12:15, By: Mark, IP: [220.127.116.11]
L2: stub year
You forgot to mention what items you are unclear about!
2011-10-09 12:21, By: Gfw, IP: [18.104.22.168]
L3: stub year
Nothing like one of those “senior moments”.
2011-10-09 16:49, By: Ed_B, IP: [22.214.171.124]
L4: stub year
Since your post was titled “stub year”, I will guess that this is at least part of your unstated question.
Recently, we arrived at a definition of stub year as “the starting or final year of a 72t plan in which less than a full annual payment is elected”.
Using that definition, if you elect to take your full annual payment in 2011, the total must be distributed by 12/31/2011. If you elect stub year treatment and your first distribution is October, 2011, then you must take out
3 months worth by 12/31/2011 and at least some of that in October.
2011-10-09 19:49, By: Alan S., IP: [126.96.36.199]
L5: stub year
From here, follow this post under the post titled ” a few questions”. That post outlines the questions to be addressed.
2011-10-10 02:55, By: Alan S., IP: [188.8.131.52]