PLR”s and inflation

L1: PLR”s and inflationIn establishing a SEPPI really would like to include an annual inflation adjustment of 3-5%. I realize that the 2002-62 ruling infers that this is not an option. Is there any chance that a PLR would grant this or should I even bother?I assume the request has been made before. Is there any place on the net to review prior PLR requests?
Thanks, this is really a helpful site2004-01-19 23:36, By: RBN, IP: [12.151.162.22]

L2: PLR””s and inflationHello RBN:
You are correct that RR 2002-62 infers that inflation indexed SEPP plans are not allowed however it only infers, it does not say that they are not allowed. Further, since the issuance of RR 2002-62 there have been no PLRs issued on SEPP plans. You may review PLRs @ www.irs.gov in the Freedom of Information Act area.
Whether seeking a PLR for yourself is worth it is a personal decision that is at least in part, financially motivated. The cost of a PLR is either $600 or $2470 for income under $200,000 or over $200,000 respectively plus the cost to prepare the filing — generally around $2500 and up.
TheBadger
wjstecker@wispertel.net
2004-01-20 07:17, By: TheBadger, IP: [38.116.134.130]

L2: PLR””s and inflationThank youBadger, it appears from your response and the discussion on COLA”s on the subsequent message that a COLA is perhaps a viable option if included in the initial plan. Next question is….how long does a PLR take to process?
I need to look at the IRS fees for PLR”s as well the $200,000 break in the PLR fee, is that $200, 000 the annual distribution value of the SEPP, the account balance of the SEPP or the cost impact of the decision? ( You dont have to answer this last question if the answer is obvious from the IRS literature).
Thanks again, RBN

2004-01-21 02:20, By: RBN, IP: [12.151.162.25]

L2: PLR””s and inflationHello RBN:
PLRs usually take 2 – 3 months from start to finish. However, that has not been the case as of late. It has been taking longer. I have two PLRs in process which started around Labor Day, 2003 & they are still not finished. Evidently, the Assisant General Counsel”s office of the IRS is a bit over worked at the moment.
The $200,000 break point to determine the filing fee is your income for the immediately previous tax year. As always there are some adjustments, but it is roughly equivalent to your line 31 on your 1040.
TheBadger
wjstecker@wispertel.net
2004-01-21 07:48, By: TheBadger, IP: [38.116.134.130]