L1: Delayed CalculationExisting plan
First distribution: 8/1/2012
The client made a 72T calculation in 2012 and began payments. The calculation was determined as an annual payment of $12,001. The distribution paperwork that was submitted had a typo (IRA Owner’s Error)and has been distributing $10,001 instead. Upon review of the calculation that was made for $12,001, the wrong age and allowable rate were used so neither amounts are allowable by the IRS.
If the client is able to correct the age and lower the interest rate significantly (0.06%)to the point where the amount currently being sent falls within the IRS’ 72T parameters, will the IRS honor the caclulation even though it was not determined before payments started? Or is the client to show proof of correct calc before plan starts?
2014-02-25 22:00, By: MikeyT, IP: [22.214.171.124]