Do I really need tax advice???

L1: Do I really need tax advice??? I have been discussing the mechanics of setting up a 72-T distribution with my broker. I understand how the amount is calculated, paid out, etc. The broker insists that I need to consult a tax advisor. Is the tax treatment of a 72-T distribution so unique that I should follow the broker’s advice?
Thank You.
Felicityv2003-08-08 14:45, By: felicity, IP: [127.0.0.1]

L2: Do I really need tax advice??? Hello Felicity:
The “do it yourselfers” versus those that consult the professinals probably split fairly evenly down the middle with niether side having a decided advantage.However, the mechanics of computation and money distributions are rarely, if ever, the real issues. Instead, I would ask yourself these questions:
1. Do I thoroughly understand the thinking process to arrive at a SEPP plan?
2. Do I understand ALL of myoptions and exit strategies?
3. Am I sufficiently self-confident tocorrectly self-document my plan?
4. Is there anything strange/unusualabout my specific facts &circumstances?
5. Am I otherwiseuncertain about any of the issues surrounding a SEPP plan?
6. Would I feel more comfortable (sleep better at night) with an opinion letter from a professional?
7.Have I thought through how to realign the underlying IRA investments to meetthe annual income objective?
If you can answer the above as: Yes, Yes, Yes, No, No, No & Yes then you are a prime candidate for the “do it yourself” camp. Any answers to the contrary are cause to pause and think that engaging a professional is a prudent step.
TheBadger
wjstecker@wispertel.net

2003-08-08 16:12, By: TheBadger, IP: [127.0.0.1]

L2: Do I really need tax advice??? Badger, thanks for your prompt response.
I am comfortable with my answers to 6 of your 7 “points to consider.” Ony number 2 gives me pause; if “ALL options” means paying a penalty for withdrawal vs not or the 3 formulas to calculation withdrawal amounts, then, YES I’m OK with my understanding of the options. “Exit strategies” have not been considered at all. I am not sure I know what you mean by the term.
Felicity
2003-08-08 20:07, By: felicity, IP: [127.0.0.1]

L2: Do I really need tax advice??? Hello felicity:
Go to www.benefitslink.com; click on books; click on personal finance & buy the book on 72(t). It will tell you everything you need to know about “options” and “exit strategies”. If you are unhappy with book within 30 days you can get a full refund.
TheBadger
wjstecker@wispertel.net

2003-08-08 20:28, By: TheBadger, IP: [127.0.0.1]