start balance

L1: start balancePlease note that I have just setup an IRA for 72t purposes from a partial 401k rollover. Can I use the current rollover balance prior to any statement or additional interrest posting to do my first annual withdrawl or is it preferable to wait until the August 1 statement to be processed and use that new balance which will include investment interest.
Thank you2006-07-21 09:36, By: car-tows, IP: [72.86.2.188]

L2: start balanceHi car-tows,
I found The Badger”s answer to a very similar questionposted by “FAR” on 1-4-2006. Check it out.
KEN2006-07-21 11:47, By: Ken, IP: [141.149.185.136]

L2: start balanceYou should be able to use either balance – the choice is yours. However, for the sake of having adequate documentation, I would use a balance that came from a statement issued by the receiving IRA Trustee/Custodian. You should probably be able to access the account balance on line the day after the transfer occurs – if yes, merely print the screen for Your files.2006-07-21 12:08, By: Gfw, IP: [172.16.1.72]

L2: start balanceAs stated, you have some flexibility on the initial account balance. What may be of concern is making sure that any trailing earnings such as dividends in the 401k are not earmarked for immediate follow up rollover into the SEPP IRA account. That would appear to be new money coming in after the SEPP was initiated and is a potentialsource of a bustwhen starting a SEPP immediately following an employer plan rollover. This issue applies whether the rollover is complete or partial, but with a partial you are more likely to be able to make it clear to the employer plan that there are to be NO follow up distributions. If you wait about 3 months before initiating the first SEPP payment, the chances for additional transfers into the IRA are substantially reduced.2006-07-21 20:26, By: Alan S., IP: [24.116.165.157]

L2: start balanceAlan – thanks for the additional clarrification and suggestions. Have a nice e3vening.
Gfw
2006-07-21 20:58, By: Gfw, IP: [216.80.125.234]