I have suggested to the moderator of this website that it would be helpful if each of the items in the template was linked to the applicable glossary ...

Accordingly, I think that you will probably need about $ 1,000,000 in your SEPP 72-T plan in order to take $ 32,000/year before taxes.

This table contains the maximum Applicable Federal Rates (also known as the 120% Federal Mid-Term Rates) allowed to be used in calculating SEPP distri...

I agree with T William. I think that you misunderstood what the "AFR Rate" means. It is 120% of any of the current and last 2 announced rates. I think...

You didn't answer s to the amount of your IRA. For simplicity sake, let's assume that you have $ 2 million in an IRA. Use the "REVERSE MAXIMUM CALCULA...

Congratulations !!! BTW, be careful about converting your home into a rental property. If you have a Capital Gain, it will be TAXABLE and you cannot ...

Yes, you are recalculating every year, so you will calculate the 2021 ANNUAL AMOUNT, and then take 9/12 for 2021. BUT, you cannot take any more or les...

No, but it is taxable, unless you repay it before 12/31/2020. But no 10% early distribution penalty, as long as you were "affected" by the pandemic, w...

Lots of luck finding a CPA, EA (Enrolled Agent) or Financial Planner knowledgeable in this area. I think that's why Bill Stecker started the original ...

You certainly may use the fixed amortization method; e.g. calculate once and take the same annual distribution for 5 years. Annual recalculation is al...

The internet and "people" is not always the best place to get professional advice. Both of the people you referred to at the bottom of your posting ar...

That was my response several times above.

Dec 15 is just a CYA approach in case the financial institution screws up you will have time to hopefully get it corrected before 12/31 of any year, b...

Since your annual distribution is less than the Standard Deduction, and the SEPP 72-T is one of the exceptions to the 10% penalty, I would not withhol...

In the past (on the previous website), sometimes the differences occurred when one calculation is done assuming monthly distributions, and others assu...

Luckily you found the original SEPP 72-T website, and this successor (who actually found me, and lives about an hour away and became my client). I am ...

I have clients who have "retired" in their 50's. If they are 55, or will become 55 during the calendar year, then there is no need for a SEPP 72-T bec...

That is correct. You should get two form 1099-R, one under your SEPP 72-T for which your accountant will file a form 5329 to indicate that those were ...

mlvmlv -- You do so at your own peril. As I said it is 60 MONTHS, NOT THE EQUIVALENT OF 60 MONTHS' DISTRIBUTIONS. I recommend that you wait until afte...

Sorry, I was confusing 2 different postings. Yours started 10/20/2016, so your plan ends on 10/20/2021. I wouldn't take more than 9/12 of your annual ...

I hope that you understand that English is a tricky language. If you take 5 ANNUAL payments starting 4/1/2016, then you will take the 5th ANNUAL PAYME...

Yes. But, if you want/need money sooner than 9 monthly payments, you can take them quarterly, or all in January. You just cannot take any more than th...

Yes, you can change the frequency of your distributions, but not on January 1, 2021 because that is a holiday, and no financial institutions will be o...

I'm sorry that some of the links show up as garbage, that you can ignore. (I can't get back to the above response to delete them.) But the actual link...

I checked with a tax guru whose knowledge I highly respect. Her response is as follows: I would assume that the “normal” rules would apply – IRS does ...

Separately, your son should be aware that the 12% tax bracket is up to $ 53,000 GROSS INCOME (which will be $ 40,000 TAXABLE INCOME after the STANDARD...

I reached out to a guru on retirement plans to clarify per the exchange below: If the 27 year old son inherits a 457 from his 63 year old mother in 20...

You are correct. New "STRETCH" rules started for TRADITIONAL IRAs and 40-K/403-B plans as of 1/1/2020 for non-spousal beneficiaries, which require INH...

I forgot to mention that if the person who died was over 70 1/2, and had not taken his RMD, then USUALLY your son would have been required to take it ...

You did not provide enough information for a "professional" response. Yes, he can take either the full annual total distribution in accordance with th...

Accountants/tax practitioners do not handle investments, unless they have Registered Investment Advisor criteria. I do not like financial planners/bro...

Since you have a 401-K, did the employer do his match with company stock ? Were any of your contributions invested in the company stock ? Are you stil...

GREAT POSTING. I would add to it the fact that most CPAs do not not even know about "SEPP 72-T's" as a terminology, let alone all of the nuances cover...

Apple turned out to be an excellent investment too. I have a new client who bought 100 shares in 1997 for $ 2,500. Thru the various stock splits, now ...

WOW. You have made great investments. There isn't much I can do to help you.

The IRS has 11 MILLION unopened envelopes. Do you really think they will care at all about addressing your request or complaint ? I interpret the word...

I forgot that the IRS lowered the fee for individual PLR's. However, yours is not eligible for a PLR because yours is not a "personal tax issue", whic...

With Congress going on vacation, and the forthcoming election period, I doubt that anyone would even consider pursuing your unique request.

You misread the alert. The CARES ACT provision applies to ADDITIONAL distributions not being allowed for SEPP 72-T plans. The headlines in all of the ...

I doubt that it would be anything that anyone would ever pursue. There is a fee of $ 10,000 to start a request for a PLR, plus usually a similar cost ...

I think that you make an interesting point, with a thoughtful analysis. There are so many other issues in general today that I doubt that the IRS or C...

Your basic assumption is INCORRECT. We often get postings with the same misunderstanding. The rule is NOT 5 DISTRIBUTIONS, but rather 5 YEARS (60 MO...

I assume that you started with the first distribution on 4.15/2017. Accordingly, your 60 months ends on 4/15/2022. You could start taking any amount, ...

NO CHANGE FOR SEPP 72-T. IT IS SPECIFICALLY MENTIONED IN THE CARES ACT AS NOT BEING ELIGIBLE FOR ANY OF ITS PROVISIONS. I REPORTED THIS 3 MONTHS AGO W...

If you go to the HOME PAGE, you will see "SEPP DISTRIBUTION CALCULATOR", MINIMUM BALANCE CALCULATOR (i.e. REVERSE CALCULATOR", and "TOOLS & RESOUR...

You have several choices in your example of starting in July -- either a total of $ 12,000 or $ 24,000 for 2020, depending upon your cash needs, timin...

No. Whichever method that you use, you are required to take out that amount. The most popular method is the calculation of a FIXED ANNUAL AMOUNT, that...

You can take distributions in any frequency, and can change for any year. So, you can take your 2020 prorata or full distributions at any time in 2020...

Yes, you have various options. First, you can take either the full annual distribution, or you can take a prorated amount based upon the month you sta...

YES. You completed your plan on 4/6/2020. You can do anything you want since then, and were not even required to take any distribution in 2020 because...

IT WILL BUST YOUR SEPP IF YOU TAKE "ANY" ADDITIONAL AMOUNT. That is why I posted the regulation as soon as I read the CARES ACT. It is the first provi...

Great insight in looking for a different CPA/tax professional. You might also consider an EA (Enrolled Agent). Many tax preparers are just that -- the...

Correct. You can take either the full annual distribution or no distribution before 9/21/2020. After 9/21/2020, you can take any amount, or no amount,...

Yes, you can voluntarily terminate your plan at any time, and pay the 10% penalty on the cumulative amount of distributions taken. But your rationale ...

If you were born 2/1/1957, then you are already 63, not 57 !!!! I think you meant to type your birth date as 2/1/1963. Assuming this correction, I wou...

Wells Fargo. As of 1/2/2019 you became 59 1/2, and any distributions after that should have been AUTOMATICALLY changed to code 7. You may have to go t...

Probably you can make the distribution at any time in April, not necessarily before 4/15. Do you really expect the fed rates to jump up above the Feb ...

There isn't any connection between the interest rate timing and the IRA balance that is used. The interest rate must be limited to the one in effect ...

You can also consider setting your non-retirement account up as a "margin account" to provide cash flow without any income taxes or 10% penalty. I do ...

Almost all of the brokers and funds code the 1099-R distributions as a "1" (no known exception) because they do not know if you have other accounts, a...

P.S. You should also look at the resource on this website to see if there are any other EXCEPTIONS TO THE 10% PENALTY FOR EARLY DISTRIBUTIONS" that mi...

Don't worry about finding a tax practitioner to file your tax returns. The tax preparer merely takes the figures from the form 1099-R from Fidelity wh...

I wouldn't do that. You are making your situation overly complicated, and locking your ROTH IRA accounts in until you are 59 1/2, or 5 years, whicheve...

P.S. Taking ROTH IRA DISTRIBUTIONS in the same year as starting a SEPP 72-T, or continuing one, is "never" an issue with the IRS. I have never heard o...

e usually like more specific information before responding to postings. You should look at the template from the link at the home page so that you can...

I would not be concerned about the rounding issue for $ 1. I have never heard of any IRS audit issue caused by any rounding issue on SEPP 72-T, or any...

No, as long as you have taken them for at least 60 months. So, if you start before you are 54 1/2, then you will have taken the distributions for at l...

First of all, you have an error in the info for your template. I think it is just a misunderstanding of terminology. The 72t DISTRIBUTION START DATE i...

If you are still employed, or returned to the work force, or are self-employed, you can also use any excess funds to do tax deductible IRA, 401-K, or ...

Between 59 1/2 and 72, you should probably consider taking distributions from your IRA in the 12% tax bracket, and possibly even in the 22-24% tax bra...

I agree that 2020 CAN BE a stub year at 11/12 of the ANNUAL DISTRIBUTION, or you can take 100% of the annual amount. It depends upon your tax situatio...

Instead of using a lower interest rate, I. and others on this website, recommend using the "MINIMUM BALANCE CALCULATOR" link on this website. This wil...

I do not know of any broker or mutual fund who will use code "2" any more. They do not want to assume the responsibility, because they have no way of ...

FYI -- THE NEW "EXTENDER" TAX LAW HAS JUST REVISED YESTERDAY THE MEDICAL EXPENSE THRESHOLD FOR 2019 & 2020 BACK TO THE 7.5% THAT WAS USED FOR 201...

The problem here is that you can only exclude the amount of the total of your Medical Premiums and other Medical Expenses which EXCEED 10% of your AGI...

When you started your SEPP 72-T plan, it was required that the PLAN would not terminate until the later of age 59 1/2 or 5 years. Since you were older...

I do not believe that you have done anything wrong, and I do not believe that your plan is busted. The only thing that is wrong is his/your use of the...

Also, you did not indicate your age/DOB. If you are now over 59 1/2, and have been in the plan for 60 months, then your plan has automatically termina...

I think that you should refer to IRB 2002-42 ISSUED 10/21/2002, and look at page numbers 710 & 711. It has the definitive definition of the 3 plan...

What did you find in your research that leads you to believe that you can no longer use the Amortization Method, and that you would therefore have bus...

Syed -- We haven't heard from you in 2 months since your Sept 17 meeting with a CPA. Please bring us up to date.

I would wait for the next liquidation, pay off the loan, and then start the SEPP 72-T. Since you retired in October, I would expect that you have sign...

If you do repay the distribution, I believe that you could in effect cancel the establishment of a SEPP 72-T plan, and would not be required to may an...

I agree with your decision to just terminate the SEPP 72-T plan. However, I would cut my losses sooner by terminating it today, and not take the Nov a...

I think that the Vanguard form may be designed for RMD (Required Minimum Distributions) at 70 1/2. If so, then they allow you to override the normal l...

You are using the wrong interest rate. You are only allowed to use the highest of the rates for the 2 months preceding the month of your first distrib...

I was about to suggest that you can convert even more. First of all, there is the $ 18,350 Standard Deduction for Head of Household tax rates. Then th...

You set up a ROTH IRA account, usually at the same financial institution where you have your IRA. You do an electronic transfer from your IRA to a ROT...

You have a unique situation as a non-resident alien with an IRA. Separate from the tax aspects, you should talk to a tax or estate attorney about sett...

Please indicate all of the figures that apply to your situation, such as DOB, IRA balance used, interest rate used, and for which month, date and amou...

Actually it has a lot of support. It passed the U S House easily, and there are only 2 senators who have any objections. One is Sen. Cruz who wants to...

I have not seen any discussion or proposal for RMD to be increased to 75, but it is proposed to be increased to 72 in the SECURE ACT which passed the ...