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working/taxes on 72t SEPP

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BySerenity

L1: working/taxes on 72t SEPPWondering if it is “legal” to work while you have yourself or spouse on a 72t SEPP. We are setting up my husbands lump sum from an early retirement on a 72t SEPP and thinking about rollingmy small 401K also doing the same. Can I still workfull or part time and maintain the 72t distribution with out penalty? Also I asume you have to pay federal and state income taxes on the distribution income. What about social security/medicare taxes are we still liable for this too? Thanks!2006-05-21 12:41, By: serenity, IP: [71.34.246.56]
L2: working/taxes on 72t SEPPHello Serenity:
Working while having a SEPP plan is perfectly acceptable; the two sources of income do not interrelate. Yes, you will have to pay federal income tax (and state) on the SEPP plan distrbutions but no FICA/Mediare taxes.
Regards
TheBadger
wjstecker@wispertel.net
2006-05-21 21:11, By: TheBadger, IP: [66.109.211.254]

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