Uniform table yes or no?
L1: Uniform table yes or no?My wife and I are looking to start a SEPP plan this month. The IRA is in my wife’s name and she was born 12/2/1959 and I was born in July of 1958. We have both read up prettyextensively on the rules over the past years and feel pretty confidant of our knowledge base. We are hoping thatVanguard, who handles our accounts will be up to speed as well.
My question is about this sites calculator andwhat changes when choosing yes or no on the uniform table. I assume this means uniform life, yes?Is it best, preferred, safer to use yes? I’m still unclear on it and we would like to maximize our withdrawal which is calculated at the highest when in the no position.
Thank you for your kind response.2014-04-04 23:03, By: Lifeloverwg, IP: [188.8.131.52]
L2: Uniform table yes or no?To maximize the withdrawals, use life only and the amortization method.2014-04-04 23:44, By: Gfw, IP: [184.108.40.206]
L3: Uniform table yes or no?Lifelover- When you saidthat you would”like to maximize OUR withdrawal” it prompted me to remind you that as much as you may be helping her, it is her IRA, and therefore, it will be her SEPP plan and her withdrawal. You may know that, but I just wanted to be sure. Good luck.2014-04-05 03:40, By: Ken, IP: [220.127.116.11]
L4: Uniform table yes or no?You may, or may not know that there’s an advantage to starting this SEPP prior to 6/2/2014. If the plan runs longer than 5 years, or 60 monthly payments you will be able to take a 6th annual payment, pro rated monthly payments, or nothing at all all in 2019 up to the expiration on 6/2/2019 (she turns 59 1/2). This way you can take a full annual payment this year, or pro rated monthy based on start date. Just thought you may want to know.
Almost forgot, as Ken pointed out. The SEPP is between your wife, and the IRS, so Vangaurds input should only be considered as advice only. Make annual, or monthly distributionsthat equal the annual, and they will still code 1 the 1099R. You will then file IRS form 5329 to allow the SEPP distribution. Point is that Vangaurd does you no favors, and it is ultimately your wife’s responsibility.2014-04-05 04:24, By: Scott, IP: [18.104.22.168]
L5: Uniform table yes or no?Vanguard is very knowledgeable about SEPP 72-T plans, but as has been stated, it is the taxpayer’s responsibility for the figures and calculations. You said that you and your wife had read extensively about these plans, and were very knowledgeable, but you were incorrectly talking about have a joint SEPP plan, so I doubt that your initial statement was correct.
As to Vanguard, or anyone’s, responsibility, they do not ask for birth certificates, or copies of ALL IRA plans that YOU are including in YOUR SEPP 72-T UNIVERSE, or conversely and separately the same for your wife. If you use the wrong birth date, the wrong IRA balances, the wrong interest rate, or misunderstand the 5 year/60 month/59 1/2 nuances, it is your responsibility, not the company’s. The key is that YOU must document all of this information in a folder/binder which you keep. Many or most companies may not even ask for copies of this documentation, but some might just to make sure that YOU have done it. if anything is done wrong, other than a missed or late payment into a wrong year because of a computer problem, that is your responsibility, not theirs. You calculate the annual distribution, you decide if you want a full annual distribution the first calendar year or a pro-rated amount, you decide what distribution you take in the last year, you determine the frequency you want distributions (which can change each year), and if you decide to transfer the accounts to a different company, you pay the consequences if you do it incorrectly, or make partial transfers or more than 1 transfer within 12 months in violation of IRS rules.2014-04-05 14:16, By: dlzallestaxes, IP: [22.214.171.124]