stub years/pro-rate first & last years

L1: stub years/pro-rate first & last yearsI have read prior posts about this, but still do not feel I understand it clearly. I am setting up a 72t right now, and the first monthly withdrawal is to be on July 31 and the last day of each month thereafter. He is only 53, so his ending date will be 4/8/2013, according to the calculator on this website. Will he be okay if the first and last year”s withdrawal is pro-rata? We are documenting everything! Thank you.2006-05-23 13:39, By: Molly, IP: [68.73.182.229]
L2: stub years/pro-rate first & last yearsMolly,
I am new to this as well and I am still learning so I don”t have an answer for you but my recommendation would be not to have the withdrawel at the end of the month because in case something goes wrong and the December payment doesn”t get paid until Jan. Just my thoughts.
Nick2006-05-23 13:49, By: Nick, IP: [205.135.136.10]

L2: stub years/pro-rate first & last yearsMolly:
Nick is absolutely right about not using the last day of the month for distributions. From a practical stand point,the closer you get to the end of the month the higher the probability forerrors. In fact, your custodian probably won”t agree to anything later than the 28th of the month due to February only having 28 days.
After some “real fun” I had last year with year-end RMD”s, I have decided to use December 10th as the latest date for these distributions.This same logic would apply to monthly 72(t) distributions, as Nick pointed out.
As far as pro-rata into and out of 72(t) on a monthly basis is concerned, yes you can do that. Check the FAQ”s on this site or better yet buy Bill Stecker”s book which coversall aspects of SEPP Plan construction and operation.
Jim2006-05-23 14:14, By: Jim, IP: [70.184.1.35]