Would SEPP be applicable in my case?

L1: Would SEPP be applicable in my case?I”m 56 years old with very limited, available assets. But I have a substantial IRA that I can”t touch without penalty for another 3 1/2 years. Would a SEPP program provide penalty-free money? 2008-03-07 15:13, By: Bob Mac, IP: [69.124.52.3]
L2: Would SEPP be applicable in my case?Short answer- Yes, if you set it up properly, and get correct payments for the five years it would have to run in your case.I started my SEPP at 56 and have no regrets. Read the many postings on this forum and study them to get a better idea of what is involved. Change the # of months to at least 12 or 18 on “limits posts to” at top of forum list, and select “SHOW ALL RECORDS so you can then scroll up and down thru all of the posting in that time period looking for topics of interest. If this IRAis more substantial than would be needed to fund the SEPP (use reverse calculator on this site to see how much is needed for AMORTIZATION method to yield the money you need each year) then it would be worth splitting up into 2 IRAs, so the new one has the starting balance you need, (you may need to do another final recalculation after the funds are moved, so you can use correct -exact- starting balance that went into the new IRA fund, especially if equities are transferred. Then the other IRAhas moneyyou can tap after reaching age 59 1/2without penalty, without endangeringtheSEPPthat has torununtil you are 61 or so. By doing that,there is no penalty for fouling up the SEPP distributions, which can happen in an emergency when one has no other source of money to tap other than “busting” the SEPP IRA by taking it out of there. Ken2008-03-08 06:08, By: Ken, IP: [75.67.65.254]

L2: Would SEPP be applicable in my case?Good answer, Ken, but there is a typo that could be confusing.
“Then the other IRAhas moneyyou can tap after reaching age 50 1/2without penalty, without endangeringtheSEPPthat has torununtil you are 61 or so.”
That would be age 59 1/2 not age 50 1/2.
Ed2008-03-08 13:02, By: Ed_B, IP: [67.170.159.37]

L2: Would SEPP be applicable in my case?Ed,
Good catch.. bad typo, and spell check doesn”t catch those. I just corrected it.Sorry for any confusion. KEN2008-03-09 09:56, By: Ken, IP: [75.67.65.254]

L2: Would SEPP be applicable in my case?Ken, appreciate your response. I”ll read the posts as you suggest to get a better idea what SEPP is all about. I understand the concept but not the details at this point. Thanks again.2008-03-09 14:24, By: Bob Mac, IP: [69.124.52.3]