Balance of IRA

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L1: Balance of IRAWhen calculating 72-t withdrawals is the balance of IRA value a current value or the previous year end of year value?2009-01-07 22:01, By: Greg, IP: []
L2: Balance of IRAIt could be either. At this point for a new plan, most would probably use the value as of 12/31/2008 since it is easy to document(your year end statement) and would probbably represent a reasonablerepresentation as to the value of your account.Rev.Rul 2002-62 definesit as…

Account balance. The account balance that is used to determine payments must be determined in a reasonable manner based on the facts and circumstances. For example, for an IRA with daily valuations that made its first distribution on July 15, 2003, it would be reasonable to determine the yearly account balance when using the required minimum distribution method based on the value of the IRA from December 31, 2002 to July 15, 2003. For subsequent years, under the required minimum distribution method, it would be reasonable to use the value either on the December 31 of the prior year or on a date within a reasonable period before that year’s distribution. 2009-01-07 22:10, By: Gfw, IP: []

L3: Balance of IRAif a client based their 72t on a mi $ but used a lump sum only to fund an immediate annuity for 5 yrs, could they invest difference elsewhere as long as they continue to meet the required payment each yr? also if client needed to tap into those monies for an emergency would they only pay the penalty on the additional distribution plus income tax of course? is the 72t payment based on only the original balance?2009-01-08 23:18, By: big, IP: []

L4: Balance of IRAI have no idea what “mi $” means, but if dollars are allocated to a SEPP and used to determine the payment, then those dollars will remain part of the SEPP until the later of 5 years or age 59.5. If an immediate annuity was purchased by the SEPP, the appropriate way to have done it would to have used a custodial account for the total assets and then have the annuity payments made back to the custodial account – just like earnings on any assets thatare part of the plan. The plan in turn would pay out thecalculate distribution to the IRA owner.If ANY of the dollars aredistributedin addition to the calculated distribution, the plan goes BUST and your client would owe the 10% penalty on all previous distributions,plus interest (calculated by the IRS) on any past due penalties.2009-01-08 23:34, By: Gfw, IP: []

L5: Balance of IRAthank you very muchcan i seperate a sum of monies from the total amount availableand use only those monies for the sepp that is needded?this way, if the clientt had a real emergency they could tap into the non sepp monies. if theyhave not reached 591/2 they would pay the 10% penalty and income tax on the remainder. is this correct?2009-01-09 00:32, By: big, IP: []

L6: Balance of IRAAs long as the accounts are separated before the implementation of the plan there should be no problem.Eexample total divided into part ‘A” and the balance in part ‘B”. Part ‘A’ is the SEPP and only those assets are used to determine the distribution, etc. Part ‘B’ would be available for emergencies.Just remember, that part ‘A’ must be paid in accordance with one of the 3 acceptable methods over the owner’s life expectancy – a five year annuity would notqualify by itself.2009-01-09 00:46, By: Gfw, IP: []

L7: Balance of IRAyou have been most helpful thank you2009-01-09 00:56, By: big, IP: []