Annual Recalculation

L1: Annual RecalculationWhat brokers are allowing annual recalculation method (amoritization method)? My broker informed me that I would need PLR. Thanks2007-03-26 17:17, By: Steve, IP: [71.29.223.154]
L2: Annual RecalculationHello Steve:
I think we might have the horse and cart a little backwards here. It is the taxpayer”s duty/responsibility to decide on the parameters of their SEPP plan including whether or not it will be annually recalculated. Further, it is the taxpayer”s responsibility to establish/determine that their SEPP plan conforms to all applicable rules and regulations; in this case IRC 72(t)92)(A)(iv) and Revenue Ruling 2002-62.
Therefore, once you decide what you are going to do, you simply tell your broker to execute per your orders. If for any reason they refuse you simply tell them you will find a new broker tomorrow.
Your broker telling you that you will need a PLR is just wrong; however, the IRS would be perfectly willing to charge you $9,000 for your very own PLR. The issue of annual recalculation is well settled by an Information Letter issued by the IRS in 2000 as well as approximately 12 – 14 PLRs issued in the 2003 – 2005 era.
TheBadger
wjstecker@wispertel.net

2007-03-26 17:46, By: TheBadger, IP: [72.42.66.98]