Swampwiz wrote:<< So, with that out of the way, I know have two different classifications to consider. As I understand it, I can take distributions (without penalty) from the tax-deferred account in some sort of "equal payments" plan. No problem there. The problem comes with determining how the Roth earnings fit into this. >>To which Phil replied:Not at all. When determining the payments under the SEPP provision you only consider the traditional IRA assets.>>And Pixy adds:Actually, SEPP can apply to a Roth as well as a tradtional IRA. The only difference is in a Roth SEPPs don't come into play until all the contributions have been used and all that's left is earnings. To take earnings when under age 59 1/2, the only way to avoid the penalty is by using SEPP. And you will pay taxes on that withdrawal. If you can avoid touching those earnings until age 59 1/2, they come out tax-free (assuming the account has been open for five tax-years). Thus, I would use any traditional IRA first because those will be taxed anyway.Regards..Pixy
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