how substantially equal periodic payment sepp plans work
you can use any qualified retirement account with a sepp plan with the exception of a 401 k you hold at your current employer you set up the sepp arrangement through a financial advisor or directly with an institution at the outset you must choose among three internal revenue service irs approved methods for calculating your distributions from a sepp each will result in a different calculated annual distribution the amount you withdraw will be pre determined and unchanged every year at least with two of the three options 3the irs advises individuals to select the method that best supports their financial situations you re permitted to change the method you use once within the lifetime of the plan 3 should you cancel the plan before the minimum holding period expires you will have to pay the irs all penalties it waived on the plan s distributions plus interest 4