Jump to content



Recommended Posts

Can the initial 72(t) SEPP payment be prorated?

Or regardless (when during the year) it's taken is the IRA owner required to distribute what amounts to the full year payment?

What guidance has the IRS issued?

All assistance is appreciated

Link to comment
Share on other sites

  • 2 weeks later...

My understanding is that the 3 methods for determining the SEPP amount that would meet the 72(t) exception all require you to determine the amount required to be withdrawn each year on an annual basis without proration.  See IRS Notice 2022-6. 

If you think about it, you don't get to prorate an RMD amount under the RMD rules because you started the payment later in the year. IRS only cares that you include the amount of the payment in gross income during the specified calendar year and they don't care when you start your distribution. Same principle would apply here.  

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...