Milberg Consulting

Recently, the IRS issued Revenue Ruling 2002-62 regarding substantially equal periodic payments under section 72(t)(2)(A)(iv) of the Internal Revenue Code. This ruling grants relief from the required minimum distribution rules to annuitants, especially those with IRA balances that were becoming depleted due to the recent decline in the equities market.

The issuance of Rev. Rul. 2002-62 generated questions about section 72(t) and also about the revenue ruling itself. Accordingly, the IRS developed a list of FAQs on section 72(t) and the revenue ruling.

These FAQs have been distributed to IRS representatives in Customer Account Services (“CAS”). In addition, the FAQs have been placed on the landing page of the newly redesigned Retirement Plans website www.irs.gov/ep.

Among the FAQs you will find are ones discussing:

Approved distribution calculation methods
Effective dates and transitional rules
Determination methods for interest rates, life expectancy and account balance
Effects of account depletion

Go to the Retirement plans web page at www.irs.gov/ep for these and many other FAQs concerning the relief granted by the IRS under Rev. Rul. 2002-62.

Full Text of Revenue Ruling 2002-62

Frequently Asked Questions regarding Revenue Ruling 2002-62

IRS News Release 2002-50 Simplification of Minimum Distribution Rules

We intend the information in this publication as a general resource, not as legal or plan compliance advice or counsel. If you consider any actions discussed in this update, we suggest that you consult a tax or ERISA professional. Milberg Consulting LLC and Barry R. Milberg do not warrant and are not responsible for any errors and omissions from this update.