using 401k to fund SEPP

L1: using 401k to fund SEPPI am 54 1/2 and plan on retiring and setting up 72t SEPP payments through an IRA. My plan was to combine funds from 2 existing IRAs and roll over my 401k to fund the SEPP. My employer would like me to continue working part time. I can discontinue participation in the 401k, but can not roll it over while still employed by the company. My questions are, can I still use the 401k to calculate my SEPP if I continue working part time? If so, can I then roll it over into the IRA once I do stop working? Could I continue to make contributions and get employer match while still working and using it for my SEPP? Would I be better off not including the 401k in my 72t calc, then when I do stop working take it as a lump sum under the separation of service exception? Help!
Thanks2003-04-09 09:28, By: ppr, IP: [127.0.0.1]

L2: using 401k to fund SEPPHello ppr:
You situation is a little complex. You must separate from service; e.g. quit/retire before you can access (and therefore use) your 401(k) account balances. Therefore the answers to your four questions are: no,yes, no, yes.
However, these are superficial answers on my part w/o all of the facts & circumstances in front ofme. Drop me anote if you would like todiscuss it in greater detail
TheBadger
wjstecker@wispertel.net
2003-04-09 09:42, By: TheBadger, IP: [127.0.0.1]

L2: using 401k to fund SEPPI”ve checked with my employer 401k and they do not permit periodic withdrawals, so the option of taking that under the separation of employment at 55 won”t work. Is there any reason why I couldn”t do a SEPP now, and then when I fully terminate (no more part time) rollover my 401k into an IRA and set up a second SEPP with those funds? 2003-04-14 11:40, By: ppr, IP: [127.0.0.1]

L2: using 401k to fund SEPPI”ve checked with my employer 401k and they do not permit periodic withdrawals, so the option of taking that under the separation of employment at 55 won”t work.
Sorry to hear that, but that is the perogative of the plan sponsor.
Is there any reason why I couldn”t do a SEPP now, and then when I fully terminate (no more part time) rollover my 401k into an IRA and set up a second SEPP with those funds?
You could certainly do a SEPP using just your IRA(s) now. Then, when you terminate (and you must fully terminate; otherwise the plan will not permit a rollover of the 401(k) to an IRA) commence a 2nd SEPP plan using the newly created 2nd IRA.
TheBadger
wjstecker@wispertel.net

2003-04-14 11:51, By: TheBadger, IP: [127.0.0.1]