date used for value of SEPP account
L1: date used for value of SEPP accountIs there a criteria for the distribution date? I’ve seen the “end of year value of the account” as an option but is there a detailed time requirement? Thanks again2010-12-22 04:09, By: johnnyg, IP: [126.96.36.199]
L2: date used for value of SEPP accountThe account balance to use is spelled out in Rev. Rul. 2002-62, Section 2.02(d) 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.
In reality you can probably use any date withinthe 6 months before the date of the first distribution that represents a reasonable representation of the value of the account. Just make sure that it is resonable and save a paper copy of the account summary forthe day that you use.2010-12-22 10:37, By: Gfw, IP: [188.8.131.52]
L3: date used for value of SEPP accountMany thanks for the good information. I’m planning on using a 31 Oct 2010 value for a February 2011 distribution given the current estimates.2010-12-22 15:36, By: johnnyg, IP: [184.108.40.206]