Beginning Balance

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L1: Beginning BalanceI have a client who has multiple qualified accounts that will be rolled to an IRA in June 2003. I would like to use the initial balance of the cominbed IRA as the balance to calculate the SEPP. To use the language of 2002-62, I think that this is “a reasonable manner given the facts and circumstances.” It would not make sense to use the 12/31/03 balances which do not include the contributions made since then and the market gains/losses. What do you think?
Also, I’ve seen posted here that it is ok to take pro-rata monthly distributions (instead of the full annualized amount)for the remainder of the first year following the initiation of SEPPs. What is there to substantiate this as being alright? Also, can you do the same thing in the last year?2004-05-27 14:08, By: justme, IP: [24.213.62.165]

L2: Beginning BalanceI would use the balance for the end of the month immediately before the moth the first distribution was made.
Pro-rata first year distributions should not create a problem. If the end of the plan uses the 5-year rule to determine the end of the SEPP, probably not. If using the 59.5 rule and you are well beyond the 5 years, the payments can stop after your client attains age 59.5
2004-05-28 09:14, By: Gfw, IP: [172.16.7.101]