yearly recalculations

L1: yearly recalculationsFrom what I have read on this discussion board you are able to recalculate every 12 months to change your yearly distribution amount. My questions are once you begin this are you obligated to dothis each and every year or can you only recalculate when its to your benefit. Also what would be the benefits to recalculating each year. thanks.2007-12-22 13:16, By: oliver, IP: [75.140.23.34]
L2: yearly recalculations>>are you obligated to dothis each and every year Yes.
>>or can you only recalculate when its to your benefitNo.
If you recalculate then the recalculationmethod must be specified when the plan is designed and before the first distribution. However, the payment may go up or down – there is no guarantee that the payment will always increase.
2007-12-22 13:28, By: Gfw, IP: [216.80.125.206]

L2: yearly recalculationsAs you can see, recalculation could result in either a positive or negative change in your annual distributio, and when matched up to your personal situation, may also be positive or negative depending on whether you needed more or less funding.
While the above may be a push, the additional calculations add additional chances to make a gaffe in your calculations that could bust the plan, since you must uniformly address all the variables in the calculation correctly, including the interest rate, account balance, joint or individual etc. For this reason, unless there is a specific perceived advantage in adding this complication to your 72t, it is best avoided.2007-12-22 14:36, By: Alan S., IP: [24.116.165.60]