Age/Balance annual recalculations Question

L1: Age/Balance annual recalculations Question
Can i recalculate my SEPP each year based on both my age change (one year older) and/or account balance (as my account increases or decreases depending on the market) without busting the SEPP? Or am i stuck at using my initial age/account balance when i began SEPP?
Also (if this does not bust SEPP) can i recalculate based on only age or account balance change or must i use both age and account balance?
Thanks.
2007-07-15 06:50, By: usagolfho, IP: [69.84.97.119]

L2: Age/Balance annual recalculations QuestionHello usagolfho:
he IRS, through its Information Letter and PLRs on this subject has been very clear. You may elect to annually recalculate; however you must do so in a very specific manner as follows:
1. You must intially design the plan to annually recalculate; you may not elect to do so mid-stream.
2. You must pick a date certain for each year”s recalcuation. Most people pick 12/31/xx for the obvious reasons.
3. You must recalculate all three variables: account balance, life expectancy and interest rate. Your account balance is whatever it is on 12/31/xx; your life expectancy usually goes gown by .9 years each year and the interest rate is usually the higher of the 120% of the mid-term applicable ferderal rate from November or December or the preceeding year.
4. Press the button and recalcuate and you have your new year”s annual distribution.
5. You must further recalcuate each and every year during the plan.
TheBadger
wjstecker@wispertel.net

2007-07-15 07:05, By: TheBadger, IP: [72.42.67.108]