Andy the Actuary Posted September 11, 2012 Posted September 11, 2012 From hot-off-the-press IRS Notice 2012-61 (9/11/2012): "(b) MAP 21 does not change the annuity substitution rule. Accordingly, for purposes of measurements to which the MAP 21 segment rates apply, the present value of a distribution that is subject to § 417(e)(3) is determined using the MAP 21 segment rates to discount the projected annuity payments in accordance with § 1.430(d) 1(f)(4)(iii)." The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
david rigby Posted September 11, 2012 Posted September 11, 2012 http://benefitslink.com/src/irs/notice-12-61.pdf I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Andy the Actuary Posted September 11, 2012 Author Posted September 11, 2012 Early english translation? Ye olde way of valuing lump sums for determining the FT and TNC is still the current way. Simply, we use (at least for the present) the higher MAP-21 rates. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
david rigby Posted September 11, 2012 Posted September 11, 2012 BTW, about an hour after the IRS emailed Notice 2012-61, they sent another email with a Revised version. To verify that you have the correct one, look at the last page: should be three footnotes. (As of this writing, I don't have a link, but we'll probably get one within a couple of days.) I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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