Is this pushing the guidelines on recalculation to

L1: Is this pushing the guidelines on recalculation toMy SEPP was started in June 2003. At that time I was not thinking about recalculation since it didn’t seem to be an option until TheBadger announced the possibility around August of 2004. After I had read more of the posts here regarding recalculation it seemed that I was not eligible since I didn’t start the process early enough (need to be done each year as I now understand.)
But what if I take this tack on justifying doing a recalculation in Jan 2006 (I understand Jan is the best timeframe to do recalculation) and beyond:
2003: used 118% for reasonable interest rate to get distribution amount $X
Jan 2004: used 109% of Nov interest rate and updated age and account balance and distribution is still $X.
Jan 2005: used 98% (can use any amount less than 120%) and updated age and account balance and distribution is still $X.
Jan 2006: given the trend I expect the interest rate to be much higher (than my starting rate of 3.76%) and increasing my distribution at that time.
Is this strategy being too aggressive with the intent? I’ve always understood to be aggressive with deductions but then this is a whole different matter!2005-05-02 22:00, By: John, IP: [63.225.103.96]

L2: Is this pushing the guidelines on recalculation toThere is a word for your plan, but I don’t think that the word is agressive. What you have outlined is a great way to bust your SEPP. You are changing the SEPP’s assumptions on an annual basis – a real NO/NO!
Therecalculation date, interest rate and other assumptions must be selected when the plan is initiated, not as it operates. Being agressive would be to not document the plan and then wait until the second year to make the decision.
2005-05-03 04:46, By: Gfw, IP: [172.16.1.70]

L2: Is this pushing the guidelines on recalculation toGfw,
I was anticipating and expecting a reply with your assessment. But now the ongoing discussion in the “what value then in PLRs” has me wanting to ask
one more question.
Is the significant factor that you think my approach would break my SEPP the fact that I am using a different interest rate (not 120%) in each year?
In the discussion about PLRs the recalculation process seems to be to reset
“all variables” at a single, consistent time of the year. Isn’t the interest
rate a variable? And in the 72(t) guidelines it indicates that any interest rate
up to 120% can be used, thus can’t anything less than 120% be used.
My inquiring mind just wants to understand the details.
2005-05-20 19:18, By: John, IP: [63.225.103.96]

L2: Is this pushing the guidelines on recalculation toAnd once selected the interest rate must remain constant or it must be defned as a constant. You are merely defining something based on how you want the result. You can do anythingf you like, the only problem that you will have is if you get audited – just read your initial post and try to justify what you want to do vs the PLRs that allowed for annual re-calculation – you aren’t even in the same universe 2005-05-20 20:08, By: Gfw, IP: [216.80.64.228]