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Recalculation

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ByGary T

L1: RecalculationI started 72t payments last year. I used the 12-31-2004 account balance, started payments May 1, 2005 using the April interest rate.
Regarding recalculation, should I use the 2005 year-end balance andthe December 2005 interest rate as a basis for my 2006 withdrawals. Or, do I have to wait until May 2006 since that will be one year from when I started.
2005-11-22 06:56, By: Gary T, IP: [24.145.246.118]

L2: RecalculationHello Gary:
I think the easier (and safer) approach is to use your 12/31/05 account balance, your life expectancy in 2006, and an interest rate equal to 120% of the higher of the mid-term rates from either 11/05 or 12/05; in this case 5.43%.
Then, you are ready to make distributions commencing 1/1/06.
TheBadger
wjstecker@wispertel.net
2005-11-22 07:39, By: TheBadger, IP: [66.250.23.21]

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