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URL:  http://boards.fool.com/new-sepp-rules-for-2004-federal-tax-return-21863013.aspx

Subject:  New SEPP Rules for 2004 Federal Tax Return Date:  1/5/2005  6:16 PM
Author:  intercst Number:  43892 of 76418

If you are under age 59-1/2 and taking penalty-free withdrawals from your IRA here's some "news you can use."

For the 2004 tax year, the IRS did away with "exception code 2" on Form 1099-R. The only code you'll see on Form 1099-R is exception code 1. See link:

http://www.irs.gov/instructions/i1099r/ar02.html#d0e220

You'll have to file IRS Form 5329 with your return to claim the exception for "substantially equal periodic payments" (SEPP) and escape the 10% penalty. Here's a link to form 5329 and instructions.

Instructions for Form 5329.
http://www.irs.gov/instructions/i5329/ch01.html

Form 5329
http://www.irs.gov/app/vita/content/basic/lesson07/images/5329.pdf

intercst

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