SEPP one time change of calculations
L1: SEPP one time change of calculations
I started my first SEPP withdrawal on Jan 3, 2017. I am changing to the RMD calculations. I used the calculator to get the withdrawal value. My CPA accountant used the SEPP interest rate of 2.33. Do I use that value because of my original withdrawal? Do I use the withdrawal amount for year one or year two. My accountant said the value doesn’t change every year but I did my own research and when using the RMD it changes yearly due to the value of the account and my age, etc. He used the account value as of DEC 2016. Since I am changing the calculations to RMD I used the account value ending DEC 2017. Thank you
2018-03-19 19:07, By: Kathy, IP: [220.127.116.11]
L2: SEPP one time change of calculations
You are right. The distribution will change each year. If changing to the RMD, there is no interest rate in the calculation… just age and IRA balance.
For a value, you were also right use the 12/31/2017 values.
It really sounds like your accountant needs a refresher course on SEPP plans.
2018-03-19 19:19, By: Gfw, IP: [18.104.22.168]
L3: SEPP one time change of calculations
Thank you. So if I go back to the calculations I use the value found as my withdrawal. That simple?
2018-03-20 00:55, By: Kathy, IP: [22.214.171.124]