What is an example of a one-time change from a fixed amortization method to the required minimum distribution method?
Facts and Assumptions: Mr. S started receiving distributions from his IRA in the form of annual substantially equal periodic payments in 1998 at age 50. His annual payment ($97,258) had been originally calculated using the amortization methodology, with the same amount distributed each year. Following a steep decline in his IRA account balance from $1,400,000 in 1998 to $750,000 in 2002, Mr. S would like to use the special rule allowing a one-time change to the required minimum distribution method provided in section 2.03(b) of Rev. Rul. 2002-62 to determine a new annual distribution amount for 2002. For this one-time change in method, Mr. S will determine an annual distribution amount for 2002 using his IRA account balance on September 30, 2002 ($750,000), and a single life expectancy of 30.5 (obtained from Q&A-1 of ยง 1.401(a)(9)-9 of the Income Tax Regulations when an age of 54 is used). Under the new method, the annual distribution amount for 2002 is $24,590.16 ($750,000/30.5). Mr.
