Annual Re-Calculation

L1: Annual Re-CalculationWhen implementing a SEPP plan that will be using annual re-calculation, start by defining three items:

Calculation Method either the amortization or annuitization method.
Valuation Date the date each year when the re-calculation will occur and the date that assets will be valued when doing the calculations.
Interest Rate – like 120% of the Federal Mid-Term rate for month prior to the valuation date.
As the plan operates, each plan assumption like age and interest rate must be set (re-calculated) each year based on a consistent valuation date.
There have been three positive PLRs issued 200432021, 200432023 and 200432024. Before you assume that you can do an annual re-calculation of your SEPP, you should discuss these PLRs with your advisor. Each is based on a similar set of facts and circumstances that you should be able torelate to your own plan. 2005-05-03 06:13, By: Gfw, IP: [172.16.7.101]

L2: Annual Re-CalculationWhere can I review the referenced PLRs? I don’t subscribe to any tax reference service.
2005-05-04 23:26, By: GT, IP: [24.145.164.87]

L2: Annual Re-CalculationYou may have to contact your tax advisor for copies.2005-05-05 04:24, By: Gfw, IP: [172.16.1.70]

L2: Annual Re-CalculationYou may have to contact your tax advisor for copies.2005-05-05 04:24, By: Gfw, IP: [172.16.1.70]

L2: Annual Re-CalculationHi all,
I found copies of these PLRs by searching the database at the following website:
http://www.legalbitstream.com/irs_materials.asp?pl=i9
Hope they arelegitimate.
Regards,
gus2005-05-05 07:40, By: gus, IP: [206.149.200.16]

L2: Annual Re-CalculationShouldn’t you include minimum distribution method along with the other two calculations?2005-05-05 13:51, By: julioa1, IP: [52.128.30.12]

L2: Annual Re-CalculationThe minimum distribution method already requires annual recalculation. It is the same as the amortization method assuming a zero interest rate.
TheBadger
wjstecker@wispertel.net
2005-05-05 14:26, By: TheBadger, IP: [66.250.23.21]