certification

L1: certificationI was asked to search for “certified” softwareto do 72(t) calculations. Am I to assume from the disclaimers that yours isNOT certified? 2007-12-18 10:57, By: susan, IP: [207.88.206.104]
L2: certificationSusan-
I used the IRS website to confirm the interest rate and then used the calculator on this website and CCH”s to confirm the calculations. Calculations matched. I will image all my notes for documenation.
-Ed2007-12-18 11:05, By: Ed, IP: [66.140.48.81]

L2: certificationI”ve been selling software to a lot of people for a lot ofyears and I have never heard of “certified” software.
What is “certified” software and who is doing the certification?
Our software is accurate and produces the same results as the IRS published in their examples for both IRS Notice 89-25 and Rev. Rul 2002-62.
You as the user should check out any software before you purchaseto make sure it meets your needs. 2007-12-18 11:06, By: Gfw, IP: [216.80.125.206]

L2: certification”Certified” by what organization?
Jim2007-12-18 11:08, By: Jim, IP: [24.252.195.14]

L2: certificationKnowing the software business as I do, it is likely that some company is using a meaningless “certification” of some sort as a way of differentiating their product or products from those of other “non-certified” companies. The chances of this company either certifying their own products or hiring someone else to do it for them are pretty good. Since the company would be paying for such “certification”, it is fairly likely that the people doing the certifying will find exactly what the company wants them to find. This is pretty much the same assome of the so-called “financial experts” out there who have a whole string of impressive but meaningless letters after their name but no real training in the subject.
Ed2007-12-18 12:04, By: Ed_B, IP: [67.170.159.37]

L2: certificationAs a customer myself who isgetting ready for a SEPP distribution, the ONLY certification that would have any realmeaning would be a solid guarantee, in writing, that would indemnify me of any IRS claims and penalties resulting from a miscalculation of my SEPP withdrawal amount. The indemnification should include any & all costs to defend the calculated amount. Otherwise, any “certification” is worth less than the electronic bits used to transmit it over the internet.2007-12-18 13:32, By: 1oldguitarman, IP: [209.64.87.68]

L3: certificationEd,
I believe that”s the kind of certification desired.2007-12-18 13:40, By: susan, IP: [207.88.206.104]

L2: certificationGordon:
We need to discuss my fee to certify your software!!!
TheBadger
wjstecker@wispertel.net
2007-12-18 14:05, By: TheBadger, IP: [72.42.66.180]

L2: certificationFrom what I have seen from information submitted to this forum, who is going to “certify” the acuracy of the information being submitted to the computer software, or to the financial advisor ?
The person who wants someone to “guarantee” that the IRS will accept all calculations and assumptions, and pay for all interest and penalties, is out of his mind. It is no different from requiring a tax preparer to “guarantee” the same for his services, or requiring it of any of the tax software vendors. Does he require similar guarantees from every doctor he visits concerning every diagnosis, every prescription”s performance, and every surgery ?
Get real !!!!!2007-12-18 18:15, By: dlzallestaxes, IP: [141.151.94.134]

L2: certificationMaybe “certification” is the wrong word; however, that being said, I do “certify” that the calculators at this website are correct. However, I think the original poster might really be asking a broader question: “How do I know that what I am being told is correct and I may rely upon those plans/facts/numbers?” In this regard, I think Gordon has appropriately written a disclaimer that one may not rely upon his work; after all, this webiste is free. Instead, viewers should view the website as a beginning of their investigation, not an end.
Anyone who does desire certification/formal opinion/indemnification, etc. should seek out individual help from a licensed professional (CPA or tax attorney) and accordingly will pay a fee for those services and guarantees.
TheBadger
wjstecker@wispertel.net
2007-12-18 19:07, By: TheBadger, IP: [72.42.66.180]

L2: certificationSusan:
I”m curious about one element of your original post. Will you share with us who or what organization asked you to “search for ”certified” software?”
Thanks.
Jim2007-12-19 07:06, By: Jim, IP: [24.252.195.14]

L2: certificationWhile this website and forum are free, if I read it correctly the software has a $50/year subscription fee. This is reasonable, but it isn”t free.
The advisor (RFC) who gets stuck with doing most of the 72(t) calculations in our office is the one who asked me to look for the software . . . and who can blame him? you”re here, aren”t you?
Obviously no software is going to ensure or guarantee that correct information was input properly, but it doesn”t seem unreasonable to me that one “certify” that given accurate information and used properly the program will generate accurate results. I fail to understand all the uproar over this expectation.2007-12-19 07:19, By: susan, IP: [207.88.206.104]

L2: certificationThe software we sell is indeed sold at a price of $50/Year and is not free.
The calculators used on this site containthe same calculation engines as the software that we sell and are free.
As I stated before, the best advice that I can give anyone using any software is to check it out and put it through sufficient tests to verify that it meets their needs. Certified or not, if you input the wrong information, or is the quote is out of date, it is indeed the person who provides the information that has a problem. Only the IRS could truly certify that software is 100% accurate and they aren”t in the certification business.
The most common problem that surfaces is not in the calculations, but rather how the software is used by the planner and the assumptions the plan is based on.

2007-12-19 07:38, By: gfw, IP: [216.80.125.206]

L2: certificationThank you Susan for the additional information. I am an advisor also so let me share some thoughts with you from the “advisor” perspective.
72(t) is a tax issue. Granted it is integral to complete financial planning, but from a legal standpoint it is still a tax issue. So the first thing you need to check is whether your advisor”s Errors and Ommission (E&O) insurance covers giving tax advice. Unless your advisor is “dual rated” as a tax professional (CPA or EA) or is a tax attorney, then the normal financial advisor E&O does not cover giving tax advice. If “dual rated” thenhe / shewill have separate E&O coverage for the tax advice aspects of the business.
My suggestion is to align with the appropriate CPA, EA or tax attorney to do the 72(t) work and let them charge the fee for that service, and they will be covered under their E&O. Then you can execute and manage the investment plan to fundthe72(t).
If you can”t find the appropriate person for the tax work, contact TheBadger (Bill Stecker) who”s all over this site.
Good luck.
Jim2007-12-19 08:51, By: Jim, IP: [24.252.195.14]