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10-06-2002, 02:58 AM
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#1
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Early-Retirement.org Founder Developer of FIRECalc
Join Date: Jun 2002
Posts: 1,840
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New SEPP Rules!
See full article at
http://www.foxnews.com/printer_frien...,64853,00.html
Quote:
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.
...
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Good news for those who didn't follow TheBadger's advice to go with the variable withdrawals!
Dory36
__________________
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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
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10-06-2002, 08:32 AM
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#2
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Recycles dryer sheets
Join Date: Jun 2002
Posts: 248
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Re: New SEPP Rules!
Here's a copy of the IRS press release outling the new SEPP rules:
http://rehphome.tripod.com/seppnew.html
intercst
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***** puts the "hoco" in Hoco-mania
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10-06-2002, 08:37 AM
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#3
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Confused about dryer sheets
Join Date: Oct 2002
Posts: 1
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Re: New SEPP Rules!
The article mentions IRS Pub 590. Be sure to also get Pub 590-SUPP, which has the new tables.
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