72t distribution decrease

L1: 72t distribution decreaseI heard that there is a letter ruling in the works to recalculate the 72t distributions that clients are taking. If your clients are anyting like ours, the calculation for their distributions were made several years ago when the market was doing well. Since the clients are locked into this rate, their accounts are depleating fast. I heard that this ruling will allow us to recalculate the distribution based on the current interest rate. Any news? Any idea when this might happen? Any info would be greatly appreciated!2002-07-30 17:17, By: arin, IP: [127.0.0.1]
L2: 72t distribution decreaseAs of Sunday, the last time I did a search; no rulings had been issued on this subject. As I write, I have filed one and am working on a second. Whenever, my PLR requests or any others become public, we will let everyone know.TheBadgerwjstecker@wispertel.net2002-07-30 18:16, By: TheBadger, IP: [127.0.0.1]

L2: 72t distribution decreaseNew twist. Forget about PLRs. What about an IRS rules that allows a 72t recalc that applies a factor to any market loss that is applied to the penalties and interest thus possibly negating any liabilities. I am researching, but have found a CPA in Texas that has successfully completed. 2002-08-05 22:43, By: merrillst, IP: [127.0.0.1]

L2: 72t distribution decreaseYou apparently know something that no one else (including the IRS) knows exists, that’s why there are a variety of PLR’s pending on the subject.Even P. Olson, Acting Assistant Secretary stated [2] We are concerned about changing the rule that prohibits an individual from reducing their distributions under the “substantially equal periodic payment” option. Code section 72(t)(4) explicitly prohibits the use of that option if the payments are changed before the end of the 5-year period beginning with the date of the first payment or, if later, the individual turns 59 1/2. Point is that there are no IRS rules that allow reduction of payments!2002-08-06 04:36, By: Gfw, IP: [127.0.0.1]

L2: 72t distribution decreaseYou are right. What I am saying is to reduce 72t distribution, but the credit for the loss may offset the penalties and interest.2002-08-14 07:32, By: merrillst, IP: [127.0.0.1]