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Balance to use for SEPP

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Bymstar

L1: Balance to use for SEPPI purchased a variable annuity with my rollover IRA. I would like to know if I should use the amount used to purchase the annuity or the current balance in the investment portfolio as the balance to start my SEPP. Thanks for the great job that you do on this web site.2010-03-05 14:16, By: mstar, IP: [74.103.53.193]
L2: Balance to use for SEPPMy guess is that you bought a variable annuity with surrender charges. If yes, then you would use the surrender value as that is that amount available if you cash in the contract. If not, please be more specific and the reason why there is a difference between the amount you paid and the amount that you have as a current balance.2010-03-05 14:27, By: Gfw, IP: [216.80.125.206]

L3: Balance to use for SEPPThe VA does have surrender charges. It also has a minimum income guarantee which at this time is the same as the purchase price. The amount I paid is invested in the stock market and has increased in value therefore there is a difference.2010-03-05 18:32, By: mstar, IP: [74.103.53.193]

L4: Balance to use for SEPPAs per my previous reply, use the surrender value which is the true market value. Guarantees of minimum income, etc are not considered for an initial SEPP balance.2010-03-05 18:53, By: Gfw, IP: [216.80.125.206]

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