72t start balance

L1: 72t start balancePlease advise if I rollover a portion of my 401k to an IRA in 2006, do I use the exact balance I rolled over to calculate the SEPP payments or the balance at the time of rate establishment. Also, If I elect to recalculate annually, would the 2007 calculation be based on the12/31/06 balance and 1/1/07 rate or the actual 1 year date from Sepp startup,for example 1/28/06.
Thank you2005-12-30 23:21, By: cart-tow, IP: [71.254.81.5]

L2: 72t start balanceHello cart-tow:
You must use the entire balance of any IRA included in a SEPP plan. However, that balance might be your rollover balance or a balance at some later date precedent to the 1st distribution.
When performing annual recalculation there are now a lot of choices. You could use your 12/31/06 balance or a later balance as long as the recalculation methodology is consistent year-to-year. Also, you would use an updated interest rate assumption equal to 120% of the MT/AFR from the two months preceeding, not the month of the distribution.
TheBadger
wjstecker@wispertel.net
2005-12-31 07:56, By: TheBadger, IP: [66.250.23.25]