Timing of payments
L1: Timing of paymentsI am 51 and plan on starting taking money out of account next year. I understand the payments each year have to be the exact same amount each year based on calculations (i can take more but would be subject to 10% penalty). Can I use a 4/1 start date and take quarterly payments?
My dob is 9/7/1965.2017-04-21 17:45, By: namehij, IP: [184.108.40.206]
L2: Timing of paymentsYou can take distributions whenever you want, daily, weekly, monthly, quarterly, semi-annually, or annually. And , you can change the frequency every year, or during the same year.
The only requirement is that the total for the year remains the same, except for the first and last year, which you can prorate, or take a full year’s worth.
One caution about your other, off-handed, comment. If you take any amount in excess of the annual amount in any year before you reach 59 1/2, you BUST the plan RETROACTIVELY from the beginning, and owe the 10% penalty on the cumulative amount that you have withdrawn. Your wording seemed to indicate that you thought you can take an extra amount at any time, and be subject to the 10% penalty only on that extra payment. That assumption is WRONG.2017-04-21 18:27, By: dlzallestaxes, IP: [220.127.116.11]
L3: Timing of paymentsThanks.
Can i take $ out early in the year and then determine the final amount lets say in October?
for instance 20,000 in March and June for total of 40,000 and then 30,000 if oct calc says 70k.
Or do I have to calculate amount as of given date and then take total amount in whatever fashion I want after that?
2017-04-23 01:32, By: namehij, IP: [18.104.22.168]
L4: Timing of paymentsUsually you make the calculation once when you start the SEPP 72-T plan. The 1st year you are allowed to take either that ANNUAL calculated amount, or the prorated amount based on the remaining full months in the 1st calendar year plus the month you take the 1st distribution.
You can take the payments the 1st year at any time before 12/31 (but we recommend the last payment be no later than 12/15 so you have time for a correction if their is a mistake). Many people take monthly distributions, others take the full annual (or prorated annual) initially because they have an immediate large cash need, but then they have to make that last until January of the following year.
Every calendar year thereafter, you can take your distributions whenever you want, in whatever amount you want, so long as you do not exceed exactly the annual amount. The frequency of the distributions each year can be changed from the preceding year, or even during the year.
Some people need larger amounts in certain months for real estate taxes and insurance payments, and have to set up their payments accordingly.2017-04-23 05:05, By: dlzallestaxes, IP: [22.214.171.124]