One Time Recalculation

L1: One Time RecalculationI started SEPP Plan (12 monthly payments per year) July 2003. Plan was set up as follows:
Calc. Method

Amortization
Life Expectancy

Single
life (annuity 2003 life expectancy tables)
Recalculation for Amort. Method No Recalculation
COLA

No COLA Increases
Mid Term Rate

3.17%
as of May 1 , 2003
Interest Rate for Amort.

3.82% (120% of mid term rate as of 5-1-2003)
Annual Payment Amot.

$27,412.60
Monthly Payment

$2284.38 ($27412.60 / 12)

Now that interest rates are higher I am considering one time change to increase monthly payments.
As my plan is set up can I do this ?
If so any details as to how and the timing will be appreciated.
Thanks
2006-04-18 08:45, By: majortom6x, IP: [71.123.68.32]

L2: One Time RecalculationShort answer is YES, you can do a one-time change.
However, the only one time change that is allowed is to a change to the Minimum Distribution [MD]Method and the MD method doesn”t use an interest rate and will almost always result in a lower, not higher, payment.2006-04-18 08:50, By: Gfw, IP: [172.16.1.74]

L2: One Time RecalculationHi Major Tom:
Short answer – No.
When you establish a SEPP Plan, you have to declare whether or not you will use recalculation, and it appears you chose not to include this feature. Also, the only “change” allowed isnot in the direction you want. You can make a “one-time change” to the RMD, or more appropriately termed MD method — same same — which usually results in a lower annual distribution. The only thing that would make this change increase your distributons is a huge, and I mean really huge, increase in your SEPP universe value from inception to the time of the change.
Jim2006-04-18 08:55, By: Jim, IP: [70.184.1.35]