Withdrawing IRA funds in addition to SEPP payment

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L1: Withdrawing IRA funds in addition to SEPP payment
I started a SEPP when I was 55. I’m now 63. Since I’m now over 59.5, am I allowed to withdraw funds in addition to my once-a-year SEPP payment or am I stuck with receiving only the SEPP amount for the rest of my life? If I
am allowed to withdraw additional funds, is there something special I have to do first? Notify the IRS? Fill out forms? Change or even cancel the SEPP plan itself?
2019-04-01 22:54, By: Gimble Pop, IP: []

L2: Withdrawing IRA funds in addition to SEPP payment
Your SEPP ended on some date about 3 years ago, specifically on the later of the day you reached 59.5 or 5 years from the date of your first SEPP distribution.
As such, all the restrictions of the plan ended back then. You did not have to specifically report the end of your plan to the IRS or your IRA custodian. Hopefully, you have not been taking distributions that you did not need the last 3 years because you thought you had to. If you have taken any distributions in the last 60 days, you could roll that distribution back to the IRA to eliminate the tax bill, as long as you understand that you only are allowed one such 60 day rollover over a 12 month period, and using it now would eliminate that option for the next 12 months.
Therefore, going forward you can withdraw as little or as much as you please, but of course taxes will be due. No penalty since you are over 59.5. The next thing you have to deal with are RMDs that start in the year you reach 70.5.
2019-04-02 00:17, By: Alan S, IP: []

L3: Withdrawing IRA funds in addition to SEPP payment
Thank you. I never really understood SEPP. Going forward, I will leave the once-a-year withdrawal in place. I’m guessing, though, that I will no longer have to file form 5329 to claim the “02” exemption. Is that correct? Sounds like it’s completely irrelevant now that my SEPP is over.
2019-04-02 22:35, By: Gimble Pop, IP: []

L4: Withdrawing IRA funds in addition to SEPP payment
I suggest that you meet with a financial or tax advisor to discuss what I call “PLANNING IN RETIREMENT”. You should be considering your GROSS income and the tax brackets and rates, which are 12% up to $ 50,700 single or $ 101,400 Married Filing Joint (based upon 2018 figures), before the STANDARD DEDUCTIONS of $ 12,000 and $ 24,000 respectively until age 65.
In addition, under most situations I recommend deferring SS benefits until age 70, because at age 66 they are 33% higher than at age 62, and at age 70 they are 32% higher than at age 66, and 75% higher at 70 compared to age 62. And these are GUARANTEED “RETURNS ON INVESTMENT”.
By taking distributions from your IRAs between 59 1/2 and 70 at 12% will also reduce your RMD (Required Minimum Distributions) after 70, which could also reduce your taxable SS benefits, and possibly the tax on your IRA distributions by keeping you in the 12% tax bracket, rather than moving you into the 22% tax bracket.
2019-04-03 02:22, By: dlzallestaxes, IP: []

L5: Withdrawing IRA funds in addition to SEPP payment
Note that there never was a single distribution requirement each year. You could have taken monthly distributions or random distributions all along as long as the total amount distributed and reported on Form 1099R was correct.
Now that the SEPP has ended, you no longer need to distribute any particular amount and have no restrictions on how and when you take your distributions. RMDs will change that at 70.5.
2019-04-03 02:48, By: Alan S, IP: []

L5: Withdrawing IRA funds in addition to SEPP payment
I believe the 12% bracket is scheduled to phase out in 2025.
2019-04-10 07:13, By: Jeff, IP: [2605:e000:1600:d38:156:9969:1ac8:cd15]

L6: Withdrawing IRA funds in addition to SEPP payment
Even more of a reason to take distributions until 2025 at 12%, at which time you will have your TAXABLE SS BENEFITS to add to your RMD at that time. I usually recommend deferring SS to age 70 (which will be a GUARANTEED 70% higher than at age 62), and take annual IRA distributions between 59 1/2 and 70 1/2 at 12%, which will reduce the taxable RMD distributions starting at 70 1/2.
2019-04-10 16:10, By: dlzallestaxes, IP: []