Beginning balance Part II

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L1: Beginning balance Part IIBadger,Gfw–I understand both your comments but I’m still a bit confused with regards to what’s ok and not ok as certain aspects in each of your replies seem slightly contradictory. Using the following example could someone further enlighten:It is now March ’02. In your unofficial opinion, if I were to decide to start a SEPP effective 4/15/02 would it be relatively “safe” from an IRS standpoint in using the ending balance effective on 3/31/02 for ALL monthly future payouts until I either cancel (bust) the SEPP or I reach 59 and half years of age? I also would prefer to keep it as simple as possible. No updated annual balance re-assessments, no cost of living adjustments, etc.I would like to avoid the PLR route unless absolutely necessary.Both your insights again greatly appreciated.Thanks in advance.2002-03-06 22:22, By: endgame, IP: [127.0.0.1]
L2: RE: Beginning balance Part IIYes. Reduce the plan to writing, calculate the payment and make the payments as scheduled. About as simple as it gets.The advantage to the annual recalculation method is that you won’t run out of money!2002-03-07 04:33, By: Gfw, IP: [127.0.0.1]

L2: RE: Beginning balance Part III agree with Gfw. Your fact set is fine to comemence in 4/02 using your 3/21/02 balances. You have three choices in this regard:1. As Gfw suggests, simply reduce your plan to writing & go do it.2. Seek out the professional services of a CPA experienced in SEPPs and get an opinion letter from that CPA “okaying” your plan. This essentially provides a level of private insurance for yourself should future questions arise.3. Seek out the professional services of a CPA in order to pursue a private letter ruling from the IRS (both of us agree that this is not necessary but some people really want to sleep well at night).If you want to discuss either of options 2 or 3 further; drop me a note @ wjstecker@wispertel.net.TheBadger 2002-03-07 08:19, By: TheBadger, IP: [127.0.0.1]