SUBSTANTIALLY EQUAL PERIODIC PAYMENTS
01.Core Concepts
Three methods of calculating: 1. Required Minimum Distribution Method 2. Fixed Amortization Method 3. Fixed Annuitization Method • Can take SEPPs from one account without aggregation • Must continue for the greater of 5 years or to age 59½. • Modifications are not permitted (cause retroactive penalty) • Two exceptions: • Those using the RMD method prior to 2023 can choose to change to the new mortality tables • One-time opportunity to change from amortization or annuitization method to RMD method with no penalty