Yearly Recalculation

L1: Yearly RecalculationMy brokeris telling me that I am not allowed to recalculate my SEPP on a yearly basis. Is there any official documents from the IRS stating this is allowed? Iwas planning on using the amoritization method and recalculating all variables every Jan 1. I am looking for something besides the PLR”s. 2007-01-08 16:21, By: Steve, IP: [67.140.107.185]
L2: Yearly RecalculationIf you are looking for more than PLRs, then your only recourse is to request your own PLR at a cost of about $10k .
PLRs give a general indication of how the IRS is thinking at any point in time. There have been a variety of PLRs issued since 2002-62 saying ”OK” to annual recalculation and outlining what they consider OK. After about 3 of these rulings, the general thought is that if you follow thesame general guidelines you should be OK.
You may want to find a second opinion, or perhaps you misunderstood what he was saying.

2007-01-08 16:48, By: Gfw, IP: [74.136.109.63]

L2: Yearly RecalculationHello Steve:
There are two “precedent setting” documents with respect to annual recalculation:
1. Subsequent to Revenue Ruling 2002-62 there are a good dozen or so PLRs all on annual recalculation which received favorable rulings.
2. In 2000, the IRS issued an Information Letter (IL). An IL is also precedent in that it functions not unlike a revenue ruling but tends to be briefer and deal with a subject on a theoretical basis.
This then is the universe of authority on “annual recalculation”.
TheBadger
wjstecker@wispertel.net

2007-01-08 16:52, By: TheBadger, IP: [72.42.67.125]

L2: Yearly RecalculationGood morning Steve:
When your broker tells you that you are not allowed to recalculate your SEPP Plan on a yearly basis, ask the following question for clarification:
“Is the restriction on annual recalculation based on IRS rules / guidelines or is it based on the broker”s company”s policy?”
My guess is the later since many companies have established policies to deal with IRA distributions from SEPP Plans and for other types of IRA distributions. Furthermore, if the broker states this rule is based on “IRS rules / guidelines” then he / she is “giving tax advice” which they are not allowed to give, unless the broker happens to be a CPA or tax attorney, which may be the case. Yes, there are a lot of CPA”s and tax attorneys getting into the investment advisory / broker busienss.
Jim2007-01-09 06:51, By: Jim, IP: [70.184.2.72]

L2: Yearly RecalculationMy brokeris telling me that I am not allowed to recalculate my SEPP on a yearly basis
Well, you can certainly “recalculate” if you want to. I guess the broker meant you might be subject to some penalties. Technically, the broker is correct. All of the info (except PLR”s) do not allow for annual recalculation.
2007-01-09 16:19, By: Gary T, IP: [24.145.246.83]

L2: Yearly RecalculationGary T – Sorry, but at this point I have to disagree. Based on the number of PLRs issued since 2002-62 there should be no problem with annual recalculation.
In short, the broker is at best uninformed – and at best it is probably in the interest of the client to seek a new broker – one that stays current, or doesn”t offer any advice if the subject matter isn”t known.
Just my thoughts!
2007-01-09 16:25, By: Gfw, IP: [74.136.109.63]