72t sepp Ira clock
Does the clock tick for a 72t sepp Ira the same as a Roth IRA? For example: started the sepp in August. Does the clock run for 60 payments or is it considered beginning Jan 1 of the year started? Started at 57 years old. Thx.
Does the clock tick for a 72t sepp Ira the same as a Roth IRA? For example: started the sepp in August. Does the clock run for 60 payments or is it considered beginning Jan 1 of the year started? Started at 57 years old. Thx.
Permalink Submitted by Alan - IRA critic on Sat, 2024-04-20 21:15
The clock starts on the date of the first 72t distribution, not on the Jan 1 of that year. You have a 5 year plan, and cannot take any non SEPP distributions or do certain transfers or rollovers until the 5 year anniversary of your first distribution. Add an extra day for a safety margin.
Permalink Submitted by Alan - IRA critic on Sun, 2024-04-21 02:01
To be clear, the 5 year period starts on the date the distribution shows in your IRA account, not the day you actually received the distribution.
Permalink Submitted by James Long on Fri, 2024-04-26 13:40
Thank you