substantiated documentation

L1: substantiated documentationWhat would substantiated documentation be? I have IRAs with different companies that comprisemy SEPP universe. I prepare my own taxes. I have prepared a packet of information to support the values and the calculations. Do I need to givemy financial consultant a copy of the packet?2006-04-05 20:53, By: squeaky, IP: [69.238.169.151]
L2: substantiated documentation
I can only assume your financial consultant is aware of your SEPP plan and you have had ample opportunity to discuss it with him/her, hopefully prior to its implementation.
Although there is no requirement to give or share your documentaion with the consultant, I can’t imagination not doing so, if only for a second pair of eyes to ensure everything is in order. That’s what we pay these folks for, correct?
Documentation should include all forms used to inititiate the plan, methodology used, reasonable interest rates, etc.In short, anything that you may need to answer an inquiry from the IRS re: your distributions.2006-04-06 11:39, By: francis3, IP: [141.154.244.227]

L2: substantiated documentationHi Squeaky:
I would definitely give a copy of your calculations and related information to your financial consultant. But let me ask a few questionsto better understand your situation.
When you refer to your “financial consultant,” exactly what role does this person play? Is he / she an accountant, tax attorney, or the one who helps you developyour investment plan and through whom you purchase your investments?
What investments do you have? Are all of these investments held at the company, or are they in a brokerage account environment? My guess is that you have mutual funds with more than one fund family,possiblya variable or fixed annuity, and maybesome alternative investments like REIT’s or LP’s.
This question generated from another string in the last few days. When you filled out the paperwork to start your SEPP distributions, did you answer any questions that would declare that you are using the rules of 72(t) for your plan? If you don’t know, ask your financial cousultant to let you examine the forms.
Thanks
Jim2006-04-06 13:22, By: Jim, IP: [70.184.1.35]

L2: substantiated documentationHello Squeaky:
I can only think of two external entities that would ask for this information: the IRS and potentially a lender from which you might seek a mortgage or other substantial loan. To that end, “substantiated documentation” is almost always external documentation; i.e. what makes you think they (whomever they are) will beleive you. Therefore, you should have a permanent file that contains:
1. Your birth certificate or copy of driver”s license.
2. Account statements for all IRAs used in the SEPP computation as of the date you computed.
3. Printouts of the interest rate tables; either from here or the Revenue Ruling that states 120% of the MT/AFR applicable.
4. A printout of the life expectancy table. The easiest is to printout Pub 590 from the IRS.
5. A letter of self-determination, a “contract” if you will that is self-produced that recites all the particulars.
6. Copies of your 1099R”s for all applicable years.
TheBadger
wjstecker@wispertel.net

2006-04-07 19:44, By: TheBadger, IP: [66.109.211.254]