Second 72t account
For the SEPP payments of more than 60 days of an existing IRA, if the balance is much higher due to growth than the original calculation when the SEPP was started (4.5 years ago), can you get additional higher monthly payments on the higher balance and in what way if that is possible (meaning would I need to roll-over the excess balance to a new IRA and start SEPP on that new IRA, or can I recaluculate the current payments because of the new balance)?
Permalink Submitted by Al Fry on Tue, 2008-05-27 19:26
Generally speaking, no. One cannot add to or subtract from the SEPP “universe” that was used to establish the payments. Recalculation, while allowed, must be started from the onset of the SEPP. It is part of the RMD method, however, and can be switched to at any time. It usually results in a lower payment, unless the account balance is extremly higher that at the start. It would be worth a look at to do a sample calculation..