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72t calculation confusion

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Byjs

L1: 72t calculation confusionQuestion 1: I have ran the amortization 72t calculation for my client using your calculator and had my IRA custodian run one as well. With all of the factors being identical, your calculator said the amortization amount should be $21, 011.75. My IRA custodian”s calculation came out as $21,242.91. Which should I use?Question 2: Without permission, my client withdrew $21,955.03 on 1/2/07. This amount is definitley more than the 72t calculations above. Is this an irreversible mistake? Does this blow up the entire 72t situation? Can she put back the overage? What is her options at this point?Thanks for your expertise.JS2007-01-09 08:49, By: JS, IP: [67.78.62.10]
L2: 72t calculation confusionI don”t spend much time checking out other calculators, only the ones that I make available. I periodically check them against the original IRS sample just to make sure. Check out our page at http://72t.net/yyyZTools/Calculator.aspxand then enter the IRS sample number into our calculator.
On $400k, age 50 and 4.5% they may be a penny or two off – our webbased calculator results in a distribution of $23,134.26 as opposed to $23,134.27 in the IRS sample. As I have said before, close enough for government work.
Maybe the place to start is by having them run the IRS numbers through their calculators and see what results are obtained.
>>Without permission, my client withdrew $21,955.03 on 1/2/07Return the money usinga 60-day roll over, establish the SEPP and then make the rightwithdrawal.2007-01-09 12:32, By: Gfw, IP: [74.136.109.63]

L2: 72t calculation confusionAre the distributions under 72t based upon the age at the start of the distributions or the attained age at the end of the tax year?
The differences stated above are likely two different interpretations ofwhich life expectancy is used in the calculations.2007-01-10 13:40, By: Dan, IP: [63.78.144.94]

L2: 72t calculation confusionThe client”s age is 53 and she will be 54 on Dec 14th, 2007, but will take the first distribution this week or next week. Which age does the IRS require to run the calculations?Thanks, JS2007-01-10 14:15, By: JS, IP: [67.78.62.10]

L2: 72t calculation confusionAge would be your attained age as of your birthday in the calendar year in which the distributions commence. PLR 8946045
Age 54 since she will be 54 on Dec 14 2007 and the first distribution will be in 2007.2007-01-10 14:21, By: Gfw, IP: [74.136.109.63]

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