Total IRA Account Balance vs Amount Allocated to SEPP Plan

L1: Total IRA Account Balance vs Amount Allocated to SEPP PlanWhen calculating the SEPP for ONE account can the Total IRA balance of that account be different from the Amount allocated to the SEPP Plan?Example, IRA Accountfor SEPP has a balance ending 31 Dec 2009 is 750,000. Amount Allocated to SEPP in this account is 500,000. Calculations made for 500,000 at 3% is 23581. Is this with in rules or a bust?2010-02-24 17:15, By: johnnyg, IP: [66.232.90.254]
L2: Total IRA Account Balance vs Amount Allocated to SEPP PlanNo. If there is $750,000 in the account, then $750,000 must be used for the beginning balance for the calculation and the annual distribution must be based on $750,000 – not $500,000.To use $500,000 the account would had to have been split into two accounts with different account numbers before you started teh SEPP. One account would contain $250,000 and the other – used for the SEPP – would have contained $500,000. 2010-02-24 17:40, By: Gfw, IP: [216.80.125.206]

L2: Total IRA Account Balance vs Amount Allocated to SEPP PlanThis situation is a bust.The entire account balance must be used in your calculations. You cannot “allocate” part of one account to a SEPP. For example if you have $750,000 under one account number and this account conains 10 separate mutual funds, all 10 funds are part of the single SEPP. In order to have $500,000 for your SEPP you will need to move $250,000 worth of fund shares into another IRA under a separate account number. You can split up the 10 fund shares anyway you wish so long as $500,000 is the value of the SEPP IRA account when you calculate your SEPP distribution amount.Jim2010-02-24 17:44, By: Jim, IP: [70.167.81.119]

L3: Total IRA Account Balance vs Amount Allocated to SEPP PlanGordon/JimUnderstood, thank you. Why thenare there two lines (Account balance and Amount allocated)in the SEPP calculator for this site?Thanks in advance2010-02-24 18:04, By: johnnyg, IP: [66.232.90.254]

L4: Total IRA Account Balance vs Amount Allocated to SEPP PlanBecause it is a calculator for estimating SEPP distributions and remaining IRA balances at the end of the SEPP plan. Please also read the HELP file item titled “Amount Allocated to SEPP”.For most, but not all purposes, you own one IRA that can consist of multiple parts. For a SEPP plan, each account stands individually and may be included or excluded. For age 70.5 Minimum distributions they are all considered as one account, even if you have 100 IRA accounts. Many people use our reverse calculator to determine the amount they need for their SEPP, split their IRA appropriately and then establish their SEPP plan. 2010-02-24 18:21, By: Gfw, IP: [216.80.125.206]