Revenue ruling 2002-62

L1: Revenue ruling 2002-62I started a SEPP based on amortizaton method in Jan. 2001, and continued to date. The SEPP has another 3 1/2 years to go. I wanted to take advantage of Revenue ruling 2002-62 and change to minimum distribution beginning in Jan 2005. However, I was just told by someone at Vanguard that the ruling only applied for one year and I have to continue with my current distribution. Is this correct? Has anyone had similar problems with Vanguard? If I am right and they are wrong I am going to need to retain someone to work with Vanguard. I am going to call back and try to talk with someone different. Thanks.
2004-12-17 09:45, By: cef48, IP: [68.215.231.149]

L2: Revenue ruling 2002-62I see that to set up a SEPP from a qualified employer plan, one must separate from service.
If an employee remains employed, can he rollover or transfer funds from an employer 401(k) plan into an IRA, and set the SEPP up from said IRA?
Thanks much for any insight.2004-12-17 09:57, By: NGX, IP: [141.154.112.39]

L3: Revenue ruling 2002-62Pardon the irrelevant post. Was trying to start new thread…2004-12-17 10:00, By: ngx, IP: [141.154.112.39]

L2: Revenue ruling 2002-62Hello cef48:
Vanguard is dead wrong. I suspect you just happened to get a bozo on the phone. RR 2002-62 2.03(b) says “An individual who begins distributions in a year using either the fixed amortization method or the fixed annuitization method may in any subsequentyear switch to the required minimum distribution method to determine the payment for the year of the switch and all subsequent years and the change in method will not be treated as a modification.”
This is about as crystal clear as it can get. Further, there is no qualifying language or sunsetting anywhere in the ruling.
TheBadger
wjstecker@wispertel.net
2004-12-17 10:08, By: TehBadger, IP: [66.250.23.21]

L2: Revenue ruling 2002-62Hello NGX:
I see that to set up a SEPP from a qualified employer plan, one must separate from service.
Correct.
If an employee remains employed, can he rollover or transfer funds from an employer 401(k) plan into an IRA, and set the SEPP up from said IRA?
Maybe. This is really a plan issue, not an IRC issue. If the plan will permit an in-service withdrawal / rollover; then sure, do it. If they won’t permit it then you are outa luck. Most plans are in the later group, but not all.
TheBadger
wjstecker@wispertel.net
2004-12-17 10:10, By: TheBadger, IP: [66.250.23.21]

L2: Revenue ruling 2002-62I agree with TheBadger’s ‘Bozo’ assessment. Call back and if you get the same crap, ask for someone in ‘Advanced Marketing’ or the legal department for your discussion. What you may be running into is ‘company policy’ rather than IRC issues.
Jim2004-12-17 10:15, By: Jim, IP: [68.1.157.228]

L2: Revenue ruling 2002-62>> I was just told by someone at Vanguard
Next time that you are the phone with Vanguard, you may suggest that if they have a question regarding 72(t), that they could probably get the right answer by posting their question to this discussion area 2004-12-17 11:26, By: Gfw, IP: [172.16.1.70]

L2: Revenue ruling 2002-62Along the lines of Gordon’s thinking; keep this watch phrase close at hand: DO NOT TRUST YOUR TRUSTEE!!!
Now why would i say such a terrible thing? Actually for several reasons:
1. Trustees are expert at trust management; not tax planning and decision-making.
2. Trustees have just as hard a time hiring competent help as anyone else.
3. Trustees look out for themselves 1st and maybe you 2nd.
Always, always remember, YOU are in control, YOU are decision-maker, YOU are responsible for what goes right as well as what goes wrong.
Therefore, if there is ever a question, always get expert (not just competent) unbiased help; e.g. from some one whose interests are your interests and not some other entity’s.
TheBadger
wjstecker@wispertel.net
P.S. Gordon — you should start charging an annual fee ($50 or $100) to permit trustees/custodians to read and/or post here.
2004-12-17 11:37, By: TheBadger, IP: [66.250.23.21]