Re: When Do You Have to Take Required Distributions from Your Sep
These retirement accounts are all self-directed SEPs so there is no administrator. If I use the life expectancy tables compared to just taking 4% it is about $1,700 less. But my accountant tells me that there are substantial penalties for underfunding your MRD. That is why he recommends taking the 4%.
There are substantial penalties for underfunding your RMD, however the life expectancy tables are accurate. All of the plan administrators use them. You can do 4% (as long as the life expectancy tables don't go over 4% down the road) if you want to, but its also safe to use the life expectancy tables.