Rev Rul 2002-62 – You change method, when can you

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L1: Rev Rul 2002-62 – You change method, when can you The question I have is regarding an IRA that had set up been set up 72(t) substantially equal payments over 5 yearsago. Initially the IRA was set upfor equal periodic payments under the fixed annuitization method. The IRA saw a steep decline in value with in the first couple of years so the individual changed methods to the RMD method to reduce the amount of the payments. The change in method was reflected in the 2004 year end distribution on12/17/2004.Question 1: When you change methods under the one time exception to the RMD Method, can you include the previous years under the other method as part of the 5 year period or does the clock start over when you change methods?Bottomline: The individual would like to cease the payments, but they aren’t sure when they can stop the payments and the ruling is somewhat vague regarding this issue.Thanks, JP2008-11-07 14:13, By: jp, IP: []
L2: Rev Rul 2002-62 – You change method, when can youJP,The clock does not start over with the one time switch to RMD. The date that the plan can be modified remains the same – the longer of 5 years from the date of the first annuitization distribution or attaining age 59.5.The final stub year in which the individual will reach 59.5 willnot require a distribution as long as 60 months worth of 72t distributions has already been distributed.2008-11-07 16:26, By: alan+s., IP: []