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.

HIGHLIGHTS: 

  1. Early retirement (before age 59 1/2) rules.

  2. Calculation of substantially equal periodic payments.

  3. Changes to the plan.

  4. Changes to the account balance once the plan is implemented.


CLIENTS WHO MAY BENEFIT:

  1. Taxpayers under the age of 59 1/2 who are planning on retiring early and funding their retirement with distributions from retirement accounts.

  2. Taxpayers who may be considering a change to an established plan.

Planning & Life IssuesClare FazackerleyPlanning, Saving for Retirement, Retirement Planning, Early Retirement, Retiring Early, IRA, 401k, Penalties