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distributions not equal

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ByArt

L1: distributions not equalI have an inherited client age 42, who set up a 72t in 4/2002 for $3775 lump payment annually in May of same year until age 60. It appears that for the past two years he has not taken the same amount, in ’03 he only took $572.74 and in ’04 he only took $439.64. The client mentioned something about a one time reduction or change because of a downturn in the market? What problems have we got? Increased taxes on already taken distributions? Can I do a catch?2005-04-08 10:02, By: Art, IP: [68.77.190.198]
L2: distributions not equalHello Art:
He may have elected to make the one-time switch to the RMD method in 2003; you will have to run the numbers to find out.
TheBadger
wjstecker@wispertel.net
2005-04-08 10:16, By: TheBadger, IP: [66.250.23.21]

L2: distributions not equalTheBadger,
I have to admit my ignorance, I pretty new. I checked with Broker Dealer and double checked files in hand for any supporting paperwork for any changes, nothing found.
How would I run numbers on this?
Art2005-04-08 10:25, By: Art, IP: [68.77.190.198]

L2: distributions not equalStart by contacting the client and get an explanation of events from him – he may have all the information that you are looking for. 2005-04-08 11:00, By: Gfw, IP: [172.16.1.73]

L2: distributions not equalHello Art:
To “run the numbers” start with the home page of this site and use the drop downs to find the RMD calculators. I assume that your new client has provided the annual statements for all accounts included in this SEPP. If not then ask for them so you can get the data for the calculator inputs. Do an RMD calculation for each year and see if you get the same numbers for each of the yearly distributions. If they are the same then I would say you are OK. If not, then let’s see what TheBadger says.
While you are at the front of this site, go to the right side and click on the second blue button and buy TheBadger’s practical guide to 72(t) book. It’s a great reference for this subject … and it’s a tax deduction for professionals.
Jim2005-04-08 11:10, By: Jim, IP: [70.184.1.35]

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