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Value Date for Recalculation

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ByTrisha

L1: Value Date for RecalculationI have had my 72t since Dec 2003. I need to recalculate my 72t so that I can have a larger distribution each month, my account has grown. In order to do this, I am going to BUST my 72t pay the piper $11k (this includes all my fees and taxes accrued) and recalculate my account. Can I use the value of my last statement dated 12/31/07?????2008-01-10 09:44, By: Trisha, IP: [66.21.155.15]
L2: Value Date for RecalculationYes, as long as you have explored all options to avoid this costly action, you can declare you prior 72t plan busted as of 12/31/07on your 2007 return (Form 5329)and start a new plan effectivethis month using 12/31/07 figures. That will enable you to still apply the higher Nov interest rate for the new plan. Note that the new plan must also last for the longer of 5 years or age 59.5.
Note that in addition to the retroactive penalties to 2003, there will also be interest charges from the dates the penalties would have been due.
2008-01-10 19:21, By: Alan S., IP: [24.116.165.60]

L2: Value Date for RecalculationHello, Trisha:
Busting a SEPP plan is a very serious financial move and one that should not be done if thereare any other alternatives. Sometimes it is possible to take out a home equity loan for living expenses and then paying off the loan with IRA money after you complete the SEPP. This usually works pretty well for most people who have a year or less to go until their SEPP ends.
You did not state your age in your question, but you are close to satisfying the 5 year part of the SEPP requirement. My question, at this point, would be… will you get $11,000 or more from the higher payments to off-set the cost of the busted SEPP?
Ed_B2008-01-16 16:23, By: Ed_B, IP: [67.170.159.37]

L2: Value Date for RecalculationTrisha:
Before you bust your current plan and start a new one, please read my comments on Carol”s post which is the sixth one above yours. I cover some aspects you may not haveconsidered.
Good luck.
Jim2008-01-17 07:44, By: Jim, IP: [24.252.195.14]

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