I've done some searching here and elsewhere, and I think I have some idea, but I'm still a little unclear as to how I finish up my SEPP in 2025 and would like some confirmation/assurance because the penalties for "busting" an SEPP would be pretty severe in my case. IRS guidance here seems to be pretty vague.
I started taking SEPP out of one of my IRAs in July 2018, so it has been more than 5 years (that test has already been passed). I turn 59.5 in April 2025, and I have been taking my distributions monthly, so in 2018 I took 6 monthly payments, and then 12 payments in 2019 through 2024.
So, my questions: First, am I correct that in 2025 I would take four monthly SEPP contributions equal to 1/12 of my annual amount, and then I am free to do what I want with that IRA? (That is, I could add funds, withdraw other funds, perform Roth conversions, change the withdrawal amount or stop withdrawals starting in May 2025)?
And in Turbo Tax, when I enter the SEPP amount, it would just be for those four months -- 1/3 of the annual amounts from 2019-24 -- when I file the 2025 return? (Any withdrawals after that should be normal distributions.). I just want to make sure this is right and minimize any red flags that may get raised with the IRS.
