You may discontinue the payments. Once the person who is taking the substantially equal periodic payment (SEPP) dies or becomes disabled, the SEPP can be discontinued. For this purpose, disability must satisfy the definition under Internal Revenue Code § 72(m)(7).

To learn more, read Rules Regarding Substantially Equal Periodic Payments and How do IRA SEPPs work?

This question was answered by Denise Appleby
(Contact Denise)

  1. I stopped distributions from my retirement account while under Rule 72(t). Will this ...

    If an individual modifies a substantially equal periodic payment (SEPP), including discontinuing the SEPP before the end ... Read Answer >>
  2. Will I incur a tax penalty when making withdrawls from my IRA in excess of my SEPP?

    Unfortunately, the IRA is "locked" for five years because of the requirement that the substantially equal periodic payment ... Read Answer >>
  3. I am in the second year of taking SEPP distributions from my IRA. Can I transfer ...

    The most recent guidance issued by the IRS and the Treasury Department is Revenue Ruling 2002-62. There is some disagreement ... Read Answer >>
  4. What are the "certain requirements" that must be met for substantially equal periodic ...

    For substantially equal periodic payments (SEPPs), the distributions would occur from your IRA after you rollover the assets. ... Read Answer >>
  5. Once substantially equal periodic payments (SEPP) of an IRA have started, is the ...

    Typically, if you withdraw assets from an IRA or a qualified retirement plan sponsored by your employer while under the age ... Read Answer >>
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