L1: Account BalanceWanted to make sure I can use any daily balance up to start date for my sepp using amortization method. Example Vanguard IRA balance as of 01/28/11 for Feb initial distribution. Want to take advantage of higher acct balance and higher mid term.2011-01-28 15:08, By: RS, IP: [188.8.131.52]
L2: Account BalanceThat balance is fine, but if you are looking to maximize interest rates and you can wait another 30 days, take the first distribution in March (2.80% maximum) rather thanFebruary (2.34% maximum).2011-01-28 15:14, By: Gfw, IP: [184.108.40.206]
L3: Account BalanceGordon is right. That may yield a bigger difference in the calcs than a bump in your balance. Try it in the calculator. Your balance could even be higher by endof FEB and if it is not, you can still use any recent”high water mark” balance (like 1/28) that you haveprinted out to document and youkeep for verification of that balance, so it is a winwin.
ALSOyou can instruct your custodian that you want to receive three months worth of distribution in March, and then take the normal monthly pmnts after that, for full year distribution in 2011 if money is getting a little tight. I did that in May 2007, getting 5 months in first payment with Vanguard, and then went to monthly after that. Make sure you list the FED and STATE tax withholdings as a percent, rather than flat amount per payment, so the taxes don’t get fouled up on larger first payment. KEN2011-01-28 16:10, By: Ken, IP: [220.127.116.11]
L4: Account BalanceAll good suggestions above.
If you use a month end or statement period ending balance, the documentation will always be retrievable if you lose your copy. Not so forother daily balancesin most cases, so if you choose a daily balance, you should probably make two copies and keep them in different places, since that balance will be needed to justify your plan if the IRS ever inquires, even several years from now.
Don’t try using a mid day balance either unless every holding you have is currently valued in real time, such as ETFs or stocks. 2011-01-29 20:48, By: Alan S., IP: [18.104.22.168]