The report that follows was generated using the 'Screen Calculation' option from the Mobile/Tablet version of the IRA Tools program. It is a 5-Year SEPP plan where the first year distribution was distributed pro-rated based on the number of months left in the first year. The result is that in the last year (year 6 on the report) the distribution is also pro-rated so that the total distribution over the 5-Years is equal to 5 times the calculated annual distribution.

If the illustration is based on a 5-Year plan, the dates covered by the plan are also included in the report. These are the same screen calculations used in the regular version of the IRA Tools programs.

SEPP Plan Assumptions
Plan Age	55
Account Valuation Date	08/31/2011
Total IRA Accounts	$500,000
SEPP Plan Account	$400,000
SEPP Interest Rate	4.50%
Est. Investment Rate	5.00%
1st Distribution Date	9/11/2011
Date Age 59.5	3/11/2016
5 Year Date	9/11/2016
1st Modification Date	9/12/2016

Minimum Distribution Method
Distribution Factor	29.600
SEPP Payment	$13,513.51

Amortization Method
Distribution Factor	16.183
SEPP Payment	$24,716.54

Annuity Method
Distribution Factor	16.309
SEPP Payment	$24,526.34

Assuming the 5-Year rule, when can SEPP payments be modified? The five year period begins with the date of the first distribution and ends on the last day of the fifth year. During this five year period, the total SEPP withdrawals should be equal to five (5) times the Planned Annual Distribution. The dates covering the 5-Year period...

Year: 1 = 09/11/2011 - 12/31/2011
Year: 2 = 01/01/2012 - 12/31/2012
Year: 3 = 01/01/2013 - 12/31/2013
Year: 4 = 01/01/2014 - 12/31/2014
Year: 5 = 01/01/2015 - 12/31/2015
Year: 6 = 01/01/2016 - 09/11/2016

Year-By-Year Analysis of SEPP Values

IRA Value Allocated to SEPP Plan: $400,000
Yr	Atn Age	Annual Payment	Interest Earnings	Year End Balance
1	55	8,239	5,909	397,670
2	56	24,717	18,648	391,602
3	57	24,717	18,344	385,229
4	58	24,717	18,026	378,538
5	59	24,717	17,691	371,513
6	60	16,478	11,738	366,773

Year-By-Year Analysis of Total Values

Total IRA Account Value: $500,000
Yr	Atn Age	Annual Payment	Interest Earnings	Year End Balance
1	55	8,239	7,418	499,179
2	56	24,717	23,723	498,185
3	57	24,717	23,673	497,142
4	58	24,717	23,621	496,047
5	59	24,717	23,567	494,897
6	60	16,478	15,817	494,237

The Cost to Bust a SEPP Plan

Yr	Annual Payment	Sum of Payments	Pre-59.5 10% Penalty	Retro. Interest	Cost To Bust
1	8,239	8,239	824	0	824
2	24,717	32,955	3,296	33	3,329
3	24,717	57,672	5,767	165	5,932
4	24,717	82,388	8,239	395	8,634
5	24,717	107,105	10,711	725	11,436
6	16,478	123,583	10,711	1,153	11,864