Reasonable Yearly Account Balance

L1: Reasonable Yearly Account BalanceI’m planning an annual 72(t) distribution starting 12/01/03 using the fixed amortization method and the October interest rate. My question concerns the “yearly account balance” to be used in the calculation. The 2002-62, 2.02(d) example only addresses the account balance issue for the required minimum distribution method. I would like to use the highest balance possible to maximize the payment. Currently my highest daily balance would be from 10/16/03. If my balance drops between now and 12/01/03, would it be “reasonable” for me to use the highest daily account balance in the prior 6 _ months?2003-10-22 11:25, By: Lud, IP: [127.0.0.1]
L2: Reasonable Yearly Account BalanceHello Lud:
A couple of things are clear (or at least inferred) from the ruling:
(1) You need to be able to “prove” your balance irrespective of method and date chosen. For many, this means using a month-end statement; for others it can be daily through the ability to go see your account online & printout an account statement.
(2) The valuation date you chose must be a date that preceeds the 1st cash distribution.
After the above, I think it becomes relatively wide open as long as you stay within the period 12/31/03 to 11/30/03. By inference, I am suggesting that using a valuation date greater than a year would probably be inappropriate. Conversely, backing up to the previous year-end, is in my opinion always okay.
TheBadger
wjstecker@wispertel.net
2003-10-22 11:41, By: TheBadger, IP: [127.0.0.1]