How Can We Help?
< Back
You are here:
Print

Account Balance Start Date

Posted
Last Updated On
Bytelcoguy

L1: Account Balance Start DateI am planning to receive my 1st ammortization method payment on January 15,2013. My IRA balance on December 31 was 701k. Today the market is climbing almost 2%. Can I use a closing balance on a date closer to my 1st distribution for the calculation? The IRS language says “reasonable and based on the facts”. I wish they made these basic concepts more plain. Do I have to use December 31 close or can I use any close up to the 1st distribution?
Thanks 2013-01-02 15:56, By: telcoguy, IP: [74.110.0.227]

L2: Account Balance Start DateThe IRS wording is clear. You can use any reasonable value on a date that you chose. It does not have to be 12/31, and as a matter of fact, we usually think that up to 6 months after a date, like a prior 12/31 value date for a June start to a plan.
You can use the value Jan 14, 2013, or go back to any date possibly back to June 30, 2012, or the highest value at any date in between that you can document.2013-01-02 16:17, By: dlzallestaxes, IP: [71.175.100.168]

Table of Contents