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Determining Account Value

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ByLakebum

L1: Determining Account ValueHI
I have read alot and feel I pretty much know about SEPP plans, but I have one question –
I recently transferred my 401k to an IRA. To accept the transer I had to remove the non-taxable funds. I want to set up the SEPP and get as much as I can. Can I still use the 3rd quarter account value statement from the 401k (higher amount), or do I need to use the 401k minus the nontaxable that actually transferred to the IRA…
Thanks for the help.. Great Site – Great Information2008-01-05 09:44, By: Lakebum, IP: [64.111.239.50]

L2: Determining Account ValueYou use the account balance that is used to determine the SEPP paymentwhich would exclude funds not transferred.2008-01-05 10:15, By: Gfw, IP: [216.80.125.206]

L2: Determining Account ValueI think the ice gets quite thin when you use an account value with an interim distribution (or deposit) between the date of the statement and the inception of your SEPP. The 401k being a different retirement plan than the IRA adds another negative element. Rather than inviting a problem, why not just use a statement, even a daily account printout from the IRA itself, even if the values have dropped somewhat since September.
While you could roll the after tax distribution into the IRA within 60 days and prior to starting up your SEPP and increase the SEPP payout, there is no sense in doing that because your after tax distribution gives you much more flexibility as a non taxable (accept for post distribution earnings) emergency fund to supplement the SEPP if needed. 2008-01-05 11:14, By: Alan S., IP: [24.116.165.60]

L2: Determining Account ValueThanks for the resonses – pretty much as I expected – thanks for the reinforcement….2008-01-07 07:23, By: Lakebum, IP: [64.111.239.50]

L2: Determining Account ValueHi Lakebum:
Keep the after-tax funds separate from your pre-tax funds and use this amount to supplement your SEPP distributions to make up yourtotal income needs. True that you can combine these two types of money into one account, but you create more problems than you get benefit.
Jim2008-01-07 07:35, By: Jim, IP: [24.252.195.14]

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