Account balance for amortization calculation
L1: Account balance for amortization calculationHello friends,
I finally retired last month and rolled over my 401k to my IRA, and with the help of this site have planned out my SEPP. Just wanted to finalize one last value for the calculator.
As far as the IRA account exact balance to use for my situation using amortization, I turn 52 Jan 19, 2010, and plan on starting the SEPP the following day, so as I understand it, for the exact account balance to use, it could either be:
A. The balance on Dec 31, 2009
B. The balance on any day up to and including the day I start the SEPP (the day I make the actual withdrawel)
Either of these account balances are acceptable right?2009-11-24 14:01, By: mikex, IP: [22.214.171.124]
L2: Account balance for amortization calculationCongratulations on your retirement! Either balance should work – just make sure that you document the initial balance and keep it as partof your permanent plan records.2009-11-24 14:06, By: Gfw, IP: [126.96.36.199]
L3: Account balance for amortization calculationThank you!
Yep, I’ll have the whole package documented according to what I’ve learned here, along with duplicate copies in my file cabinet ready to send to the IRS if they ever ask for them.2009-11-24 14:13, By: mikex, IP: [188.8.131.52]
L2: Account balance for amortization calculationHi Mikex,I thinkit could be very difficult to wait and use the IRA balance that is very close to theday ofthe first payment to be made. Most firms probably need a week or so to process your initial SEPP payment request. Check with them first. It would be easiest to use the 12/31/09 balance which should also be memorialized in a month end statement (for your records) that is generated by your custodian, and would give you enough time to do your final calculation and submit any needed paperwork to them so they can honor your requested first payment date. A multi page SEPP request form had to be submitted to Vanguard for the SEPP I started with them, and your custodian may have similar requirements. There is no need to complicate this. Ken2009-11-24 16:20, By: Ken, IP: [184.108.40.206]
L3: Account balance for amortization calculationHi Ken,
I’m with Fidelity and have already talked to them in person at an investor center (I hand carried my 401k check to them). They really have nothing to do with SEPP plans anymore, it’s all your responsibility. As far as they are concerned you withdraw your money and after that it’s your problem to account for it properly. The withdrawel is electronic to my personal bank account whenever I use the withdrawel funds function from my IRA account (it’s all built into their website when you log in), minus the regular taxes I choose to withold in the process of transferring the money, so that only takes probably a day. I will have to submit the 5329 form every year, again because they don’t mess with SEPP plans (which is good because they told me wrong information over the phone about them once). I won’t be setting up any kind of auto-SEPP withdrawels, I’ll take care of it myself during the year. But even so, I will most likely use the Dec 31, 2009 balance becasue it is a nice firm year end statement.2009-11-24 16:45, By: mikex, IP: [220.127.116.11]