Timing of Distributions

L1: Timing of DistributionsI’d like a clarification of two points concerning recent queries. Although it’s not a slam dunk, you seem to agree that it probably is not necessary for the number of distributions — and hence the size of the individual distributions — you take within each calender year to be uniform under an annual distribution plan, provided the total amount distributed during the calendar year equals the required amount. If I am right so far, I have two follow-up questions. First, is it necessary to specify in advance what the actual timing will be for the distributions taken within each calendar year, or is it sufficient to specify in the plan document that you are establishing an annual distribution plan and that distributions taken during each calendar year will total the annually required amount? Second, if the frequency and timing of distributions within each calendar year can vary, I’d like to know why Gfw thinks the year in which the plan is established must be treated as a stub year unless the plan is established in January. If the timing and frequency of the distributions taken during each calendar year can vary, why wouldn’t it be O.K., for example, to specify in a plan established in September 2002 that the full annual distribution for 2002 will be taken in one payment in October 2002, while the annual distribution for 2003 will be taken in 12 monthly payments commencing in January 2003?2002-08-22 20:30, By: PH, IP: [127.0.0.1]
L2: Timing of DistributionsThere is a limit to the detail that can be outlined on a web discussion forum. Both the Badger and I are merely interpreting past PLRs. But as we state on the site, “The materials on this site contain many references to Private Letter Rulings [PLR]. Private Letter Rulings may not be used or cited as precedent – they will only give you a general indication of how the IRS was thinking based on the facts and circumstances presented in the PLR and at the time when the PLR was released.”Based on your question, you may want to contact your advisor directly, outline the exact plan that you want to adopt and go for your own PLR – that’s the only way to be sure.If you don’t have an advisor to help you, consider contacting the Badger off list and I’m sure that he will outline estimated costs, etc. His email address is The Badger2002-08-23 07:12, By: Gfw, IP: [127.0.0.1]