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If I am taking SEPP distributions can I also take any of the other qualified distributions during the same period?
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If I am taking SEPP distributions can I also take any of the other qualified distributions during the same period?

I presume yo mean other qualified distributions from the same IRA account(s) as the SEPP's are coming from? The answer is not clear; there is no guidance anywhere on this question.

A literal reading of how SEPP's work; e.g. the concept of a closed group of accounts with no in's & no out's other than the SEPP itself suggest that the answer is no. OTOH, why should SEPP's preclude one's other rights, say to take a medical withdrawal, particularly when there is no language saying you can't.

Bottom line, if you do take multiple types of withdrawals, including SEPP's, from the same accout, you will have some very interesting numbers on Form 5329 & some explaining to do to Uncle. Is the withdrawal worth the hassle & exposure?

TheBadger
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I was curious and now I have the answer: There is no definitive answer. It seems logical to me that if there is no specific prohibition against taking advantage of more then one of the qualified early distributions that it should be okay to do so. However my reasoning might not stand the test of the logic of the IRS or a tax court so I will conclude for now NO rather then Yes. I don't want to be a test case.

I am not planning on going for more then SEPP withdrawls but these questions come to mind so I ask them. I appreciate your reply and perhaps down the road the experience of someone who has "been there"
as it were, will share their experiences on this board.

ttjasi
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There is no definitive answer.

That is correct.

It seems logical to me that if there is no specific prohibition against taking advantage of more then one of the qualified early distributions that it should be okay to do so.

Generally I would agree, BUT...

However my reasoning might not stand the test of the logic of the IRS or a tax court so I will conclude for now NO rather then Yes. I don't want to be a test case.

...The whole concept of SEPP's is really threefold, but you don't reall yfind it written anywhere:

1. Define a single or multiple IRA SEPP universe of accounts to which nothing happens but for SEPP withdrawals.

2. Use one of the 3 methods to compute the $$$ of SEPP's.

3. Obey the time / 59 1/2 rules.

The idea of other qualified distributions coming out of the SEPP universe of IRA accounts creates an exception to #1 above. That's what scares me. On the other hand; #1 above is an implied rule only.

TheBadger


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