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Last Name: PENSCO Trust Account Number: Birth Date: / / I have chosen to request or am currently receiving payments from my Individual Retirement Account with PENSCO Trust Company (PENSCO Trust) based on the Substantially Equal Payments Exception stated in Internal Revenue Code section 72(t)(2)(A)(iv) and Internal Revenue Ruling 2002-62. In considerat.

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Under the fixed annuitization method, the annual payment amount under a SoSEPP is determined by dividing the account balance by an annuity factor that is the present value of $1.00 per year beginning at the taxpayer's age and continuing for the life (or lives) of the taxpayer (or taxpayer and taxpayer's beneficiary).

The 72(t) rule is, once completing a rollover and a 72t is setup to pay out an income stream, it must continue until the age of 59 ½ has been reached or for a minimum of 5 years, whichever comes last. For example, if you start a 72t at the age of 57, it must run until you are age 62, then it stops.

Understanding Rule 72(t) To take advantage of this rule, the owner of the retirement account must take at least five substantially equal periodic payments (SEPPs). The amount of the payments depends on the owner's life expectancy as calculated through IRS-approved methods.

A SEPP plan is best suited to those who need a steady stream of pre-retirement income, perhaps to compensate for a career that ended sooner than anticipated. You'll have to pay all the penalties it allowed you to avoid if you quit the SEPP plan before it concludes plus interest on those amounts.

SEPP payments must be substantially equal, meaning they cannot fluctuate or you may lose the ability to receive penalty-free withdrawals. Payments must be based on the taxpayer's life expectancy or the life expectancy of their beneficiary. You must not be employed at the company that sponsors the retirement account.

You may begin at any age under 59 ½. However, you must set up a schedule of substantially equal payments (paid at least annually) that is calculated in ance with IRS requirements and is based on your life or life expectancy (or the joint life or life expectancy of you and your beneficiary).

Under section 72(t)(2)(A)(iv), one of the exceptions to the 10% additional tax is for distributions that are part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the ...

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232