SEPP to avoid Sect. 72(t) tax penalty

[taxedtothemax]

Would appreciate any feedback anyone might have. I'm trying to locate a website that might have a tool to perform a calculation using the fixed annuitization distribution method. Also, if the individual taking the early distributions has named a spouse as the beneficiary of the account, can the single life expectancy table still be used? I presume the individual should send written notification to the pension plan trustee advising of her desire to receive the SEPP and also the desired methodology to be used to insure there is no surprise when the 1099-R arrives? Thanks in advance for any assistance.

[JohnH]

Here is the best site I've ever seen. Wish I had known about it six months before I first discovered it. I could probably have saved a client about $6k in the long run.

http://www.72t.net/

Others who are much more knowledgeable about this will probably chime in, but I think one of the most important things to do is to split the retirement plan into two unequal plans and run the SEPP out of the larger of them.
Then if the client has a financial emergency 3-4 years into the SEPP, they can draw funds from the non-SEPP plan and pay the penalty only on that withdrawal without disqualfying the entire SEPP retroactively.

The site also has a great forum devoted entirely to SEPP matters. Bill Stecker, who posts on the forum as "The Badger", is an excellent resource. You can completely rely on the advice contained in any comment he makes.