I have not looked at Sec. 72(t)(4) in a long time, so I am not sure if *any* modification of the payment schedule – even an arguably insubstantial one – blows up a 72(t).

Suppose client set up an amortization 72(t) for annual payouts in the month of November, and has been following the schedule faithfully for many years.

Then, one year, their circumstances change and they decide that it works better for their finances to receive the 72(t) payment in April of each tax year instead of November.

Let’s assume there is no intention to game the system or somehow use this change to skip a year of distributions, or take two distributions in a single tax year. There will still be just one full distribution every tax year the 72(t) is in place, and no additional/excess contributions during the 72(t) period.

Is this a modification that blows up the SEPP? 72(t)(4) says “modification” without any qualifiers – no requirement that the modification be “material” or “substantial”. So, a bald-faced reading would say that changing the distribution month from November to April would be a modification of the series.

But is the IRS really *that* stringent of the timing of the annual payment? Is there possibly a reg that addresses this situation?

Please and thank you.