Badger….I’m still confused re balances…..

L1: Badger….I’m still confused re balances…..Badger– Admittedly, I prefer your answer over gfw’s. The part that still confuses me however is that if you read my prior post carefully I’m asking as to whether a 12/31/01 (emphasis on ’01) balance can be used even though payments begin as late as 9/01/02. In your post you quote what appears to be an IRS statement:…”Thus, by omission, the IRS really does not care what opening balance you use, as long as the measurement date is within or applies to the same tax year of the distribution…”The measurement date (ending balance date?)at least how I read it must therefore begin on 1/01/02 or later in order for it to apply within the tax year of the distribution which is also within ’02.Is therefore my understanding correct that I couldn’t use a 12/31/01 ending balance date because in this particular example my tax year distribution applies within ’02? As a side note, my SEPP pamphlet from Vanguard states to quote: “The IRS has not defined which account balance – your prior-year-end balance or your current balance – may be used. You may wish to obtain a private letter ruling from the IRS regarding your situation.”By this statement, it implies that I could use the 12/31/01 ending balance regardless of my payment start date of 9/1/02. Thanks again…endgame2002-08-06 10:24, By: endgame, IP: [127.0.0.1]
L2: Badger….I’m still confused re balances…..The exception to the general rule (and it does make sense) is 12/31. The IRS’s position (on just about everything) is that a 12/31 balance is the same as a 1/1 balance. Infact, IRC Reg. 1.401(a)(9) — the bible regulation on millions of IRA matters tells taxpayers this quite clearly and even forces the use of 12/31 balances of the technically prior year in certain distribution computations; e.g. the required min. distributions for those over the age of 70 1/2.Thus, if you were contemplating commencing SEPPs on 9/1/02; I would tell you that the following in descending sequence are the best account valuation dates to use:1. 8/31/02 — the best.2. 7/31/02 or 6/30/02 — second best.3. 12/31/01 — tied for second best4. Any other month-end on 2002 — third best5. Any other rational valuation date in 2002 — fourth best.6. Any other date preceeding 12/31/01 — not allowed.Make sense? If so great, if not drop me a note.TheBadgerwjstecker@wispertel.net2002-08-06 11:10, By: TheBadger, IP: [127.0.0.1]

L2: Badger….I’m still confused re balances…..>2002-10-11 16:33, By: JAR, IP: [127.0.0.1]