Note: IRC Section 72(u)(4)(C) states that "immediate annuity" means an annuity "which provides for a series of substantially equal periodic payments during the annuity period.
What does SEPP stand for?
SEPP stands for Substantially Equal Periodic Payments (premature IRA distributions)
This definition appears frequently and is found in the following Acronym Finder categories:
- Military and Government
- Business, finance, etc.
See other definitions of SEPP
We have 29 other meanings of SEPP in our Acronym Attic
- Sakai Educational Partners Programme
- Science & Environmental Policy Project
- Secure Electronic Payment Process
- Secure Electronic Payment Protocol
- Single Ended Push Pull
- Single-Edge Processor Package (IC)
- Society for the Education of Physicians & Patients
- Solar Electric Primary Propulsion
- State Environmental Protection Plan
- State Establishment for Pesticide Production (Iraq)
- Southeastern Professional Photographers Association
- Special Education Per-Pupil Amount (Canada)
- St Edmund's Past Pupils Association
- Socio-Economic Performance and Potential Analysis Capacity Project (Canada and Ukraine; Canadian International Development Agency)
- Special Education Policy and Programs Branch (Canada)
- Southeast Exotic Pest Plant Council (Oak Ridge, TN)
- Salary Expenses Per Patient Day (nursing cost control)
- Soutien à l'Elaboration et au Portage de Projets Européens (French: Support for Development and Porting of European Projects)
- Secretariat of Policies for the Promotion of Racial Equality (Brazil)
- Separation Processing
Samples in periodicals archive:
Fortunately, there is an exception to the 10% additional tax on early distributions--the series of substantially equal periodic payments (SEPPs)-- that can be useful for these taxpayers.
The IRS argued in Tax Court that a taxpayer who elects a series of substantially equal periodic payments is not allowed any further distributions within the first five years of the election irrespective of whether the distribution would qualify for another statutory exception to the section 72(t) tax, unless the employee dies or becomes disabled.
5 percent of your adjusted gross income--as long as those expenses aren't reimbursed * If you take distributions in substantially equal periodic payments based on your life expectancy * If funds are withdrawn due to the IRA/401(k) owner's death "It's important to note that even in these 'exception' situations, you still have to pay income taxes on any funds you withdraw," says Fishbein.
18) The Substantially Equal Payment Exception The 10% penalty tax will generally not apply to a series of substantially equal periodic payments received annually or more frequently.
Distributions that are part of a qualified series of substantially equal periodic payments (SEPPs) made annually to the IRA owner are also exempt from the penalty.
The booklet is accompanied by a worksheet designed to help investors calculate their substantially equal periodic payments under one of three IRS-approved methods.
Part of a series of substantially equal periodic payments (IRS Revenue Ruling 2002-62 recently revised the rules starting in January 2003.