Busted SEPP

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L1: Busted SEPPIf I bust my SEPP and I have to go back and re-calculate using the amortization method, is my starting balance and interest rate for the new calculation based on the original starting date of the original SEPP, or is it based on current value and current interest rate? 2009-05-21 01:32, By: Shell, IP: []
L2: Busted SEPPIt is based on starting a new plan just as if you never had the busted plan. This includes a new term, account balance, interest rate, etc.
More problematic is the mechanics of reporting your first plan as busted. If the specifics of your distribution amounts and pattern allows you to report the bust as of 12/31/08, then your new plan can begin this year and you will not be penalized forsome or all ofyour 2009 distributions. Otherwise, your penalty will include 2009 as well because these are basically calendar year plans.
See PLR 1999 090592009-05-21 04:41, By: Alan S., IP: []