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Account Balance

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ByJeff

L1: Account BalanceIn the 72t Sample/Form Plan, it states “To comply with RR 2002-62, the initial valuation date should probably be the December 31 of the prior year, or on a date within a reasonable period before that year”s distribution. “.
1) What is meant by “reasonable period”? one month, two months, three months, etc…?
2) If one were to rollover his 401K in March “03 to an IRA,then wouldit be acceptable to use the rolled over amount as the account balancein the IRA to start the SEPP in April “03? or would I have to wait for an account balance statement for the end of March “03 and then start the paln with its value? or is either OK to use?
Thanks, Jeff
2002-11-24 20:43, By: jeff , IP: [127.0.0.1]

L2: Account BalanceUnfortunately reasonable is an IRS word amd not mine. Best bet is to review the account and make a judgement call as to what value on what date represents the most realistic picture of your account. 2002-11-26 12:33, By: Gfw, IP: [127.0.0.1]

L2: Account BalanceJeff I”am in the same situation. I think the web site is great but I”am a little disappointed in the naswer GWF gave you. GWF can you or the badger maybe provide a little more info for both Jeff and myself.2002-12-04 11:31, By: rich, IP: [127.0.0.1]

L2: Account Balance
Sorry, but with a word like reasonable nothing is black and white. Truly you have to look at the account and make a determination. If the account last December was worth 400,000 and today it”s only with $200,000, would it be reasonable to use the $400,000 account balance.
This is the point where if you don”t want to make the determination, you should consult with a professional and get their advice based on the details concerning your account. And a determination of “what is reasonable” for one account may have absolutely nothing to do with “what is reasonable” on some other account. 2002-12-04 12:02, By: Gfw, IP: [127.0.0.1]

L2: Account BalanceGFW, sorry I should have been more clear. My account isn”t set up yet. I will be retiring on 1/3/03 and receiving a lump sum check on or about 2/1/03 I also have a company 401k account. My plan is to roll both over into a new IRA account.Could Ithen use the end of month balance to calculate my SEPP against. Most of the correspondence usally refers to the end of previous years balance which of course I don”t have. 2002-12-04 12:23, By: Rich, IP: [127.0.0.1]

L2: Account BalanceBased on your circumstances, it would be reasonable to use the balance after the rollover occurs. If all the funds were together on 02/15/03, that should be a good date.
Good luck.
2002-12-04 13:04, By: Gfw, IP: [127.0.0.1]

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