One Time 72-t change

You are here:
< Back

L1: One Time 72-t changeA few questions regarding the 72-T change…..
1) Is it my understanding that you can use ANY reasonable account value to make the min. dist. one time change calc? (for example: 12/31 year prior OR last months end value? etc.)
2) If you want to make the change in the middle of the year and you have already taken out more than the min dist amount using another method, would you need to wait until the start of the next year to make the change or could you “pro rate” the rest of the year and take 1/12 of the min dist amount each remaining month?
3) Once you make the change, you use the min. dist. w/d amounts the softwareprojects for the remainder of the 5 year term correct? Or do you have to revisit the software at the end of each year and recalculate with the new ending value?
Thanks!2004-11-08 13:21, By: Andy, IP: [69.53.78.183]

L2: One Time 72-t changeHello Andy:
The answers:
1. Yes.
2. There are actually four possibilities here:
A. Wait until next year.
B.Prorate the reainder of the year.
C. If less than 60 days ago, put some money back in the account.
D. If more than 60 days ago, file for a PLR under RR 2003-16; cost $95.
3. Recalculate each year-end.
TheBadger
wjstecker@wispertel.net
2004-11-10 10:25, By: TheBadger, IP: [66.250.23.22]