Rollover from 401k to IRA-What account balance to

L1: Rollover from 401k to IRA-What account balance to I will be leaving the workforce later this year. At that time I will be rolling over my 401k to a seperate IRA. For the 72t distribution that I will be taking, can I base the distribution calculation on my 401k balance as of 12/31/04?
Frankie2005-01-23 15:14, By: Frankie, IP: [69.37.126.183]

L2: Rollover from 401k to IRA-What account balance to Hello Frankie:
A qualified yes. I am assuming that there will be no contributions / distributions between 12/31/04 and whenever you commence 72(t) distributions. If there will be, you really need to wait until the cash transactions are completed & then pick your account balance for 72(t) computations.
TheBadger
wjstecker@wispertel.net
2005-01-23 15:29, By: TheBadger, IP: [66.250.23.21]

L2: Rollover from 401k to IRA-What account balance to Good morning Frankie:
As TheBadger stated, you need to take into account any additions or distributions from the K-plan when you do the rollover. My suggestion is to delay calculations until the rollover is complete for the following reasons:
1. Change in market value. If your K-plan is invested in the market rather than money market, then today’s value is less than your 12-31-04 value. Assume that you don’t leave work until August and complete the rollover in October, and further assume a falling market throughout that time period (this is an assumption and not a prediction), then you would probably overstate the amount to base your SEPP calculations on, resulting in taking too much money out with detrimental results.
2. If you purchase your investments through a broker, then the sales charge would reduce the amount you have for your SEPP calculations. As in #1, your calculations would be negatively impacted.
Bottom line is to wait until you leave work, complete the rollover, then make your SEPP calculations.
Jim2005-01-24 11:44, By: Jim, IP: [68.1.157.228]

L2: Rollover from 401k to IRA-What account balance to Did you know that in most instances you can do a sepp directly from your 401(k) Plan? Based on the expense ratios of the investment funds along with an adequate investment menu you may want to keep your pre-tax investment with your 401(k) plan.2005-01-24 14:06, By: Joel, IP: [68.197.111.95]

L2: Rollover from 401k to IRA-What account balance to Withdrawals from your 401(k) are exempt from the 10 percent tax if you retire during or after the year you turn age 55. Here is another reason why you may not need a sepp.2005-01-24 17:32, By: Joel, IP: [68.197.111.95]