Early Retirement Distributions — SEPP

Explore strategies for managing early retirement distributions and avoiding the 10% early withdrawal penalty with Substantially Equal Periodic Payments (SEPP). This guide covers the specific rules and calculation methods for SEPP, helping you generate income from retirement accounts like IRAs and 401(k) plans before age 59½ without incurring additional taxes.

Highlights:

• SEPP Overview: Understand the basic concept of SEPP and its role in early retirement planning.

• Calculation Methods: Learn about the required minimum distribution, fixed amortization, and fixed annuitization methods.

• Compliance Requirements: Key rules for maintaining SEPP status and avoiding penalties, including continuous payment requirements and handling account balance changes.

• Tax Implications: Insights into the tax treatment of SEPP distributions and the consequences of non-compliance.