SEPP paperwork

L1: SEPP paperwork
What do I need to do to documentmy SEPP plan ???
I was thinking one piece of paper would do, containing the following:
(a) amount of IRA (and account number information)
(b) percentage rate used distribution method used (in my case, fixed amortization)
(c) first withdrawal (date & amount) {{ my first withdrawal will be one annual payment for 2006 }}
(d) my age (dob)
(e) life expectancy table used (as an attachment)
Do I need to specifiy future withdrawal methods too ??? (monthly, quarterly, annual)
Am I missing anything ???
Do I need to provide a copy of this document to my trustee ???

2006-11-13 11:19, By: session52, IP: [69.167.167.60]

L2: SEPP paperworkIf you will go to the top-center of the page for the drop-down “72(t) SEPP Plans” and then the third item “Sample SEPP Form,” I think you will answer all of your questions about what to record. Also, print out the calculations as supporting documentations. Also, check your custodian”s web site as they may have calculators for your use.
Jim2006-11-13 11:28, By: Jim, IP: [70.184.2.72]

L2: SEPP paperworkYour withdrawal frequency is not locked in, you can do annual in one year and monthly or quarterly the next. Just be sure you distribute the exact annual amount no later than early December, so you have a chance to verify that the payments equal the correct amount for the year. If they don”t, then you have time to correct by taking an additional amount of rolling back within 60 days.
If you IRA custodian takes some ownership and will verify your calcs, all the better. If you provide them your documentation, it may also increase your chances of getting the exception code on the 1099R, and while not conclusive, it”s definitely worth having.
2006-11-13 21:53, By: Alan S., IP: [24.116.66.98]

L2: SEPP paperworkFor Alan S:
Thank you for your suggestion inprevious posts to make monthly distributions early in the month or atleast early in December for annual distributions so you have time to recover / correct errors. I have used your suggestion to re-evaluate my elderly clients taking their annual RMD”s from IRA”s. As a result I have moved all of them back to no later than December 1, and it has helped save some problems.
Let me make this suggestion for monthly SEPP distributions. Set the date to the 5th of the month instead of the 1st through 4th. If you use the 1st through the 4th, holidays and weekends could create problems. Some custodians will use the business day closest to the requested distribution date to actually send out the check or EFT. Assume January 1st falls on a Saturday then the closest business day is the day before or Friday, December 31st of the previoius year. In this example you got your 12 distributions in one year, and the first distribution for the next year occurs early, so you actually get 13 distributions in the previous year. Now you have to scramble to get this corrected … if you can get it corrected at all.
Thanks again for your great posts.
Jim2006-11-14 08:40, By: Jim, IP: [70.184.2.72]

L2: SEPP paperworkJIM:
I calculate the RMD for all of my clients in January, as soon as I receive copies of their IRA or Retirement Account Statements. They all take their RMD before 1/31. This avoids the problems/complexities if they die during the year, and before they take their RMD.
Also, for the majority of them who live, and have investments in stocks or equity mutual funds in their IRAs or Retirement plans, it means that the growth outside the IRA or plan will be taxed at 15% when sold, while the growth within the IRA or plan will ultimately be taxed at 25%-35% whenever the distribution is made.2006-11-14 23:01, By: dlztaxes, IP: [4.175.9.152]

L2: SEPP paperworkFor Jim:
Your suggestion concerning setting monthly SEPP distributions to the 5th of the month would also apply to single annual distributions. A similar “scramble” would ensue if your friendly custodian dispensed a second calendar year payment on December 31.
Dave2006-11-15 21:11, By: DME, IP: [209.112.195.29]