Rev.Ruling 2002-62

L1: Rev.Ruling 2002-62After reviewing your site, as well as others, I think I understand most of this ruling & how it relates to making a one time modification to your SOSEPP’s.
However, there is one individual in our financial planning office who sees things somewhat differently than whatI understand to be true.
We have an individual who has been taking SOSEPP’s for the last 5 years under the amoritization method. Using an overly optimistic interest rate along with the market downturn in the early 2000’s has caused the IRA to be almost depleted.
I see an example on your site the pretty much replicates this scenario.
The question has arisen as to what value to base the new RMD on. Your example seems to base it on the current value.
My associate seems to think we can base it on our original amount &base the current RMD amountusing current life expectancies.
He says that he researched this back in 2002-2003 & that is the way that he understood it could be done.
I have yet seen anyone do it this way.
I called the IRS & they were of no help at all.
Can you shed some light on this?
Thanks.2006-01-03 13:49, By: David W, IP: [66.249.226.70]

L2: Rev.Ruling 2002-62Your friend may want to re-read 2002-62. One point to keep in mind is that by definition, the Minimum Distribution method (whether for SEPPs or actual Required Minimum distributions) assumes that the balance used is based on the previous year”s 12/31 value – it is never a constant value.2006-01-03 14:06, By: Gfw, IP: [172.16.1.75]