Reasonable date for balance – 12/31 for balance fo

L1: Reasonable date for balance – 12/31 for balance foAs the subject line says, can I use the account balance on 12/31/03 and the interest rate from July to start SEPP sometime between now and 9/30/04?
As it turns out, that was the date with the highest balance.
Thanks, 2004-08-16 09:49, By: woolybully, IP: [136.171.122.16]

L2: Reasonable date for balance – 12/31 for balance foRev. Rul. 2002-62 defines a reasonable account balance as…

(d) Account balance. The account balance that is used to determine payments must be determined in a reasonable manner based on the facts and circumstances. For example, for an IRA with daily valuations that made its first distribution on July 15, 2003, it would be reasonable to determine the yearly account balance when using the required minimum distribution method based on the value of the IRA from December 31, 2002 to July 15, 2003. For subsequent years, under the required minimum distribution method, it would be reasonable to use the value either on the December 31 of the prior year or on a date within a reasonable period before that year”s distribution.

In the example they do use 12/31 of the previous year. Is using a 9 month old balance reasonable? Your guess is as good as mine. Does it represent a fair valuation of the account? The Badger might have a few comments. 2004-08-17 13:28, By: Gfw, IP: [172.16.1.71]

L2: Reasonable date for balance – 12/31 for balance foI plan to begin 2 Sepp’s in September. Is there any problem with begining both Sepp’s(each with it’s own dedicatedIRA Acct & well documented) on 9/1 using the July mid-term rate ? I’m in the process of doing account transfers into these two IRA’s & plan to use 8/31 as the reasonable starting account balance for each plan.I will still have a 3rd IRA outside of these sepp’s for emergencies.
I’m concerned that the IRS might view it as one Sepp but I want to have the flexibility that TheBadger outlines withusing mulitiple Sepp’s.
2004-08-20 10:28, By: Jack, IP: [68.235.8.54]

L2: Reasonable date for balance – 12/31 for balance foHello Jack:
As usual, success lays in the details. Launching multiple SEPP plans on the same date should be no problem as long as:
1. well documented.
2. actual distributions come from the correct IRAs.
TheBadger
wjstecker@wispertel.net
2004-08-20 10:33, By: TheBadger, IP: [66.250.23.21]

L2: Reasonable date for balance – 12/31 for balance foThanks and sorry for the mulitiple posts…. Dont know how I putthis post in this thread…2004-08-21 08:14, By: jack, IP: [68.235.8.54]