Join Early Retirement Today
Thread Tools Search this Thread Display Modes
New SEPP Rules!
Old 10-06-2002, 02:58 AM   #1 Founder
Developer of FIRECalc
dory36's Avatar
Join Date: Jun 2002
Posts: 1,827
New SEPP Rules!

See full article at,64853,00.html

A Major Change in IRA Withdrawal Rules
Friday, October 04, 2002

... Once you start "substantially equal periodic" withdrawals, you cannot stop or alter the way you figure them until either: 1) you reach age 59 1/2, or 2) you've taken withdrawals for 5 years -- whichever takes LONGER. If you violate these terms, then the 10% penalty will be applied retroactively to every dollar you've taken out of your IRA since you started.
But thanks to this new ruling, individuals in this situation can slow down their IRA withdrawals to help preserve what's left in their accounts. The IRS will now allow them to change from one of the fixed withdrawal methods to the variable one and THIS WILL NOT TRIGGER THE 10% PENALTY!

If this applies to you, instead of having to take out the same amount year after year, you can now re-calculate your annual withdrawal based on what your IRA was worth at the end of the previous year. If your IRA is worth less than the year before, you will take out less; if it goes up in value, so will your withdrawal. Furthermore, YOU CAN MAKE THE SWITCH NOW AND REDUCE YOUR 2002 WITHDRAWAL.
Good news for those who didn't follow TheBadger's advice to go with the variable withdrawals!


Often uninformed, seldom undecided.

Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. Mark Twain
dory36 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: New SEPP Rules!
Old 10-06-2002, 08:32 AM   #2
Recycles dryer sheets
Join Date: Jun 2002
Posts: 248
Re: New SEPP Rules!

Here's a copy of the IRS press release outling the new SEPP rules:


***** puts the "hoco" in Hoco-mania
intercst is offline   Reply With Quote
Re: New SEPP Rules!
Old 10-06-2002, 08:37 AM   #3
Confused about dryer sheets
Join Date: Oct 2002
Posts: 1
Re: New SEPP Rules!

The article mentions IRS Pub 590. Be sure to also get Pub 590-SUPP, which has the new tables.
dcutter is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
moving IRA with 72T SEPP lb FIRE and Money 3 01-15-2007 04:34 PM
25 Rules to Grow Rich By Martha FIRE and Money 15 11-12-2006 07:25 PM
New SEPP Rules for 2004 Federal Tax Return intercst Other topics 5 01-21-2005 06:10 PM
SEPP Question cookrd1 Other topics 2 11-20-2004 09:09 AM

» Quick Links

All times are GMT -6. The time now is 05:12 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.