One of the most important financial planning stories of 2022: New rules in IRS Notice 2022-6 just sharply hiked distributions amounts permitted from qualified plans before age 59½.  

The new rules will allow many more individuals to take substantially equal periodic payments (SEPPs) from their IRAs or 401(k)s in their 50s. With The Great Resignation under way, this tax planning topic is breaking news for financial advice professionals.

The new IRS rules implementing and enforcing Section 72(t) of the Internal Revenue Code significantly change with Notice 2022-6. The changes enable many more individuals to quit the work force by tapping their IRAs, 401(k)s and other qualified plans before age 59½.

IRC Section 72(t) has been evolving for decades, and this change significantly expands SEPPs coincident with a cultural and socio-economic shift which unexpectedly has lowered the workforce participation rate of the U.S.  

At this class, Bob Keebler, who has partnered with A4A for over a decade to bring breaking news to financial planning professionals, has analyzed Sec. 72(t) since it was released 20 years ago, covers:

• A history of IRC Section 72(t) SEPP rules since 2002
• Notice 2022-06’s new 5% floor
• Why a 5% interest rate expands use of SEPPs  
• What to do when 5% SEPP results is too much
• Three methods to choose from for calculating SEPPs
• Integrating SEPPs into a retirement income plan   
• Net unrealized appreciation and SEPPs
• Other 72(t) exceptions
• An explanation of the new life expectancy tables
• Age 55 rules for qualified plans

Robert S. Keebler, CPA/PFS, MST, AEP (Distinguished), CGMA, is a partner at Keebler & Associates. Bob has been named by CPA Magazine as one of the Top 100 Most Influential Practitioners and one of the Top 40 Tax Advisors to Know During a Recession. His three-decades as an educator of tax professionals makes him a once-in-a generation figure in the leadership of the accounting profession.