Recalculations of SEPP

L1: Recalculations of SEPPI read the May 12, 2004 New Private Letter Ruling on SEPP’s by William Stecker.
If oneintends to recalculate either the Amortization or annuitilization methods, do they need to detail their intent to do so upon the first distribution request or can they just do so in the second year? Also, if one does not recalculate in the second year, can they recalculate anytime after?
Thanks,
Bob K2004-12-03 19:04, By: cartows, IP: [141.152.222.198]

L2: Recalculations of SEPPHello Cartows:
Let’s talk about what’s right and what happens:
1. What’s right — document everything, including your intent to recalculate up front before the 1st distribution and then follow that plan as documented.
2. What happens — in the middle of year two, the taxpayer discovers that recalculation is an option and chooses to simply do it having never documented their SEPP plan previously.
Far be it from me to pass legal/moral judgement on #2; nonetheless, it does happen and even the IRS recognizes that it happens.
Come year three, one has either recalculated in year 2 or they did not. If they did, they must recalculate again. If they didn’t; then they can not recalculate.
TheBadger
wjstecker@wispertel.net
2004-12-03 20:15, By: TheBadger, IP: [66.250.23.22]