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72t change

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ByTim

L1: 72t changewhen a 72t ira has been in effect, a one time change is allowed if there has been a substantial decline in account value. Can you cite the IRS code section that deals with this exception and it’s conditions?2004-11-29 10:38, By: tim, IP: [64.52.16.166]
L2: 72t changeHello Tim:
A one-time change to a SEPP plan is allowed for all taxpayers irresepctive of whether the IRA account has substantially delined or not. The authority is found in Revenue Ruling 2002-62; Section 2.03(b) which permits a taxpayer to switch from the amortization or annuitization method to the minimum method.
In this case it is not an IRC code section that permits this change; rather it is an interpretation made by the IRS of IRC 72(t)(2)(A)(iv) thru issuance of the aforementioned ruling that permits the change.
TheBadger
wjstecker@wispertel.net
2004-11-29 10:52, By: TheBadger, IP: [66.250.23.22]

L2: 72t changeHi Tim.
The toughest part of making this change is finding the factor forcalculating your Minimum Distribution, which is related to the Required Minimum Distribution associated with age 70 1/2. You probably want to useThe Uniform Lifetime Table which is Page 95 of Pub 590 for 2004. However, this table starts atage 70, but you probably need a factor for a somewhat younger age for your situation. Enter TheBadger’s book which is available through the home page of this web site.
Besides answering most of your questions on this subject, Bill provides an expanded ULT for younger ages. This table was published by the IRS … once … but is still quite obscure.
Good luck.
Jim2004-11-29 11:36, By: Jim, IP: [68.1.157.228]

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