EOY balance

L1: EOY balanceDo you have to use previous years ending balance to calulate SEPP?
If 120 percent of AFR is 4.16 I’am I locked int that amount or can I take a lesser amount say 3.9 percent?2002-10-21 18:37, By: richg, IP: [127.0.0.1]

L2: EOY balanceI’m not totally sure that I understand your question.
First, if you are implementing a new SEPP, you may want to use that balance as of the end of the previous month – we’re a long way from 12/31/2001.
The current rate for next month is 3.68% – it changes every month. This rate is used with the amortization and annuitization methods. Based on 2002-62, it states that the maximum rate is 120% of the mid-term rate – any lower rate would probably be Ok. Note, it’s not until 01/01/2003 that this becomes the max rate.
2002-10-21 19:01, By: Gfw, IP: [127.0.0.1]