valuation at distribution
L1: valuation at distributionHello,
Nice site. I’ve been reading your page for a few years. Thanks.
I am 52 as of May. I retired from one job and took my pension as a lump sum in February. I rolled my 401k and lump sum into a rollover IRA. Using your calculator in February, I came up with a distribution using the amortization method.
The market has been very good due to my fortunate timing (I had nothing to do with it. I am not a market timer. I put the money in the market 60/40 stocks and bonds mutual funds). I started with just under $1.6 M and over the past several months it has grown to 2.1 even with withdrawals (80k/year).
My question is this: This fund didn’t exist last December. I made the assumption for the valuation in February. But I can’t find a solid reference to suppor this. I don’t expect the IRS would not let me distribute until next year (of course that’s academic now!).
z2009-10-23 19:19, By: z3braman, IP: [22.214.171.124]
L2: valuation at distributionI am having a problem understanding your question. If you started a 72t plan in February using a rollover IRA, you should have used your initial balance or another actual balance on a date before you ordered your initial distribution. That statement, including an on line statement should be retained as part of your documentation of your 72t plan calculations. What particular investments you maintain inside the IRA has nobearing on your calculations, nor do gains or losses after you start your plan because you are using a fixed dollar method.I don’t follow the comment regarding the IRS not letting you distribute until next year. Did you not start your plan in February, and have you taken monthly distributions? Where do you stand in relation to your 2009 distribution requirement? If your first distribution was in February, you have a choice of taking 11 months worth or the full annual calculation between your start date and 12/31/09. Please clarify your question further if this response does not address your question.2009-10-23 19:31, By: Alan S., IP: [126.96.36.199]
L2: valuation at distributionStart by reading http://72t.net/RevenueRuling2002-62- you can use any date since you did the transfer to the IRA that represents a “reasonable” representation of the actual value since all the transfers occurred.Yes, you can start this year. If the value of the accountproduces more income than you need, use the reverse calculatorand split the IRA before you begin.2009-10-23 19:32, By: Gfw, IP: [188.8.131.52]
L3: valuation at distributionThanks. Between the two answers, I think I have it.
I have read the valuation should be the amount as of December 31 the prior year (or something like that). But if, as pointed out, there is a valuation based on the transferred sums, that can serve as the valuation.
I was in a hurry since I thought the interest rates would go down after February. I needed 80k per year and I could get that with those February numbers. My transfers caused my accounts to be tied up for some reason so I had to make a token withdrawal from a money market fund within the IRA. According to Vanguard, that was recorded in February.
z2009-10-23 19:56, By: z3braman, IP: [184.108.40.206]
L4: valuation at distributionYou MUST take either 11/12 or 100% of your annual distribution by 12/31/2009. If you have taken less than that amount to date, then you must take the balance in the next 60+ days. If you have taken more than the annual amount, then you can return the excess if it was taken within the last 60 days. If not, you have busted the plan, and will have to pay the 10% penalty in addition to the income taxes, and then start over in January 2010.How much is your annual amount, and how much have you taken already in 2009 ?2009-10-23 23:46, By: dlzallestaxes, IP: [220.127.116.11]