Early Retirement Distributions - SEPP
This handout highlights the rules regarding the exception to the 10% penalty for early retirement distributions. The handout also discusses the possible risks involved in implementing this strategy.
Early retirement (before age 59 1/2) rules.
Calculation of substantially equal periodic payments.
Changes to the plan.
Changes to the account balance once the plan is implemented.
CLIENTS WHO MAY BENEFIT:
Taxpayers under the age of 59 1/2 who are planning on retiring early and funding their retirement with distributions from retirement accounts.
Taxpayers who may be considering a change to an established plan.