Increase in 72t Payments due to Inflation

L1: Increase in 72t Payments due to InflationIs there any way to get a cost of living increase in your 72t distributions? 2002-05-28 13:32, By: thebull, IP: [127.0.0.1]
L2: Increase in 72t Payments due to InflationCheck out the FAQ section.If the plan is already in existance, then the answer is no.If the plan has been implemented, then the answer can be yes.2002-05-28 13:52, By: Gfw, IP: [127.0.0.1]

L2: Increase in 72t Payments due to InflationHello thebull:The public & official pronouncements of the IRS and the Code are silient on the subject of COLA’s. However, approx. 1/2 dozen PLRs have been issued on COLAs, all of them favorable. The COLAs approved have been fixed; e.g. 3% per year for N years; as well as relative; e.g. my last year’s distribution times this year’s CPI divided by last year’s CPI.The cautious tax advisor will tell you to go get your own PLR if you want to impliment a COLA. A more aggressive tax advisor (I am in that camp) will tell you to go ahead & document the program & proceed w/o a PLR as this is well travelled ground on which the Service will not reverse themselves.TheBadgerwjstecker@wispertel.net2002-05-28 18:05, By: TheBadger, IP: [127.0.0.1]

L2: Increase in 72t Payments due to InflationI’ll bet that you wanted to also say (as I did) that it can easily be implemented in new plans, but not as an add on to existing plans. As we point out in our FAQ…PLR 199943050 – Absent appropriate language permitting annual cost of living adjustments at the time of the initial substantially equal periodic payment, the recalculation of the annual distribution amount to include a 4% cost of living adjustment, and a one-time catch-up payment, would be a modification of the distributions that would trigger the premature distribution penalty. 2002-05-28 19:04, By: Gfw, IP: [127.0.0.1]

L2: Increase in 72t Payments due to InflationOh, Absolutely.I think we can generally take SEPP programs and classify them as either retrospective or prospective. Every PLR that had any retrospective feature to it; implying a look-back in time to correct/recalculate/revise prior period computations has been uniformly denied. Not one has succeeded.Conversely, the Service can sometimes be suprisingly easy on prospective plans where all the action will be future time periods. In these circumstances the Service is evidently looking at the uniform & multi-year application of a consise program; not the resultant payment itself.Thus, all the more reason to measure three times and cut once.TheBadger 2002-05-29 08:56, By: TheBadger, IP: [127.0.0.1]

L2: Increase in 72t Payments due to InflationI have been receiving distributions for nearly a year, so the only way to get an increase is to create a new IRA for a supplemental SEPP as long as I don’t touch the old IRA and SEPP. Would you agree with that idea? 2002-05-29 14:45, By: thebull, IP: [127.0.0.1]

L2: Increase in 72t Payments due to InflationAdditional income could be created with a second SEPP. And, with the second SEPP, you could add a COLA index if desired. 2002-05-30 06:36, By: Gfw, IP: [127.0.0.1]

L2: Increase in 72t Payments due to InflationHello thebull:Why don’t you drop me a note with your particulars. There may be a solution.TheBadgerwjstecker@wispertel.net2002-05-30 13:58, By: TheBadger, IP: [127.0.0.1]