Used mid-day account balance for calculation

You are here:
  • KB Home
  • Used mid-day account balance for calculation
< Back

L1: Used mid-day account balance for calculationI set up my SEPP using a mid-day account balance for my IRA instead of the end-of-day balance. My first distribution was 6/25/2013. Needless to say, the market fluctuated during the day and closed lower than the balance used in the calculation.
Now I’m wondering if I should cancel the SEPP and start over or what? My next distribution is scheduled for 7/25/2013. My birth year is 1955.2013-07-15 13:32, By: Mike, IP: [24.28.137.73]

L2: Used mid-day account balance for calculationIf you printed out something from your custodian’s website that reflects the balance used, there shouldn’t be a problem – nothing says that you have to use an end of day balance. End of day balances are just easier to document.2013-07-15 14:34, By: Gfw, IP: [205.178.67.189]

L3: Used mid-day account balance for calculationThat’s the problem. I did print page for everything but that. I have gone back and downloaded end of day prices for 6/17 and 6/18 and both are less than the value I used in the calculation. Thinking maybe I will just let it ride and see what happens. Or do I cancel it and start over. Next distribution is 7/25.2013-07-15 20:03, By: Mike, IP: [24.28.137.73]

L4: Used mid-day account balance for calculationSTOP AGONIZING OVER THIS.
Use whichever end of day figure you can document. Calculate the ANNUAL DISTRIBUTION.
If you are planning to take the full year, subtract what you took in June from the Annual Total, and take the balance over the next 6 months.
If you are planning to take a prorated amount for 7/12 of the annual amount, then use that prorated total, subtract what you already took in June from that prorated total, and take the balance over the rest of the year.
THERE IS NO REQUIREMENT THAT YOU HAVE TO TAKE THE SAME AMOUNT EACH MONTH OR EACH PAYMENT !!!2013-07-15 20:54, By: dlzallestaxes, IP: [72.94.41.159]

L5: Used mid-day account balance for calculationDlz… Great advice. Hopefully he didn’t take the full annual distribution. If he did, he may still be eligible to roll the excess back into the account.2013-07-15 21:50, By: Gfw, IP: [205.178.67.189]

L6: Used mid-day account balance for calculationThat’s good advice. Forgot that the annual distribution is the key. I will modify my monthly pmts and get back on track. Thank you.2013-07-16 11:24, By: Mike, IP: [24.28.137.73]

L7: Used mid-day account balance for calculationIf I choose to leave the payments as is, would an annual deposit of the overage be sufficent to correct the problem? If so, how does one explain that deposit on their tax return?2013-08-05 14:49, By: Mike, IP: [24.28.137.73]

L8: Used mid-day account balance for calculationInstead of talking in generalities, we could help you better if you would be more specific.
Give us your date of birth, the account balance, the initial interest rate that you used, and the 6/25/2013 initial withdrawal, and now any withdrawal since then.
With that information we can tell you what your options are for the rest of 2013.2013-08-05 15:00, By: dlzallestaxes, IP: [72.94.41.159]

L8: Used mid-day account balance for calculationShort answer is NO. Additional deposits by you will bust the plan.
Why are you trying to make things complicated. If you messed up, correct the problem (if possible) and go on.
Adjust you monthly amount to reflect what should be taken as teh annual amount.2013-08-05 15:20, By: Gfw, IP: [205.178.51.82]

L9: Used mid-day account balance for calculationI was afraid of that but thought I would ask. Thank you for the simple answer. No more questions.2013-08-05 21:59, By: Mike, IP: [24.28.137.73]