non qualified annuities again

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L1: non qualified annuities againI posted earlier about using 2 non qualified annuities (held with 2 separate institutions) to create a SEPP 72t universe and taking distributions from only one of the accounts. From the responses it sounds like this could be acceptable if it were set up properly. I realize that it wasn’t set up properly. What I am wondering is, since the institution making the distributions doesn’t recognize these distributions as 72T SEPP’s and they are coding form 1099R with a 1 in box 7, can I commit a second non qualified annuity to the SEPP plan and keep the records/calculations/account statements myself and just file a form 5329 each year while the SEPP is running?
SEPP universe specifics: NQA #1 account balance Dec. 31 2006 – $390,676. NQA #2 account balance Dec. 31 2006 – $310,878. Age in 2007 52, Age of Beneficiary in 2007 21. Amortization method used. Joint Calc. used. Distributions started on Oct. 1 2007. Amount of distributions – $3000.00 per month. Reasonable interest rate 4.87%.

Last question: Can NQA #1 be moved from one institution to another and have the SEPP plan remain valid?Thanks in advance for any help you can give.2008-09-03 07:57, By: s60r, IP: [24.237.249.237]

L2: non qualified annuities againMerely re-read the previous responses. The answer is NO. since it wasn”t set up properly at the beginning,you can”t make a change after the fact.
What you are asking is for someone on this forum to tellyou that it is OKto break the law and try and then cover it up – not a real good situation to be in if the IRS does an audit.
I”m afraid that that you are on your own.
2008-09-03 11:19, By: Gfw, IP: [98.214.144.242]

L2: Mid-Term Rate – October 2000Hello Vic:
In 10/2000, the MT AFR was 6.09%
[email protected] 07:37, By: TheBadger, IP: [72.42.109.191]

L2: Mid-Term Rate – October 2000–2 sourcesI found this link to an IRS website. I checked the newest two months under the 120% column, and they match the actual rate figures that Gordon has listed on this site. Remember that if the payments started in OCT 2000, the rates that can be used (or at least not exceeded) are those for either AUG 00 or SEPT 00. If the rules were different back in 2000, someone may need to chime in, but this is a starting point.
http://www.irs.gov/businesses/small/article/0,,id=112482,00.html
FOOTNOTE–I just realized that you did not check this site. If you go to the INTEREST RATES TAB on left, Then choose SEPP/72t RATES, and scrool down below the graph, there are many pages of the monthly rates, and I think page 8 & 9 have the months you may be interested in reviewing. It has the same 7.33% 120% midterm rate for Oct 2000 that is listed in the IRS link that I listedabove. It goes back to Jan 2000.
Badger”s rate in his reply does not match those for Oct 2000, which are 7.33% in both tables I am citing, but he may be quoting thebase rate before it is multiplied by 1.2 to get the 120%.. He knows way more than I do, so that may need to be resolved.

Ken2008-09-03 07:39, By: Ken, IP: [75.67.65.254]

L2: Mid-Term Rate – October 2000This link is PERFECT!!!
Thank you.
J. Victor Conrad, CFP, ChFC, AIF, CPA (inactive)2008-09-03 08:09, By: Vic, IP: [24.154.118.89]

L2: Mid-Term Rate – October 2000Hello Vic:
You asked for the mid-term rate for 10/2000 which was 6.09%. 120% of the mid-term AFR was 7.33%. However, this rate is inapplicable to the time period you are interested in; at least for rate determinations on SEPP plans. Revenue Ruling 2002-62 did not become mandatory until 1/1/2003 capping the interest rate assumption at 120% of the MT/AFR from the two preceding months. back in 2000, it was a much more wide open field with many taxpayers assuming 120% of the long-term AFR or more.
[email protected] 08:38, By: TheBadger, IP: [72.42.109.191]