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3.60% rate

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Bydave

L1: 3.60% rateI just have a simple question for someone. Can 3.60% be used as a reasonable rate whenusing the Fixed Amoritization method?2005-11-15 17:50, By: Dave, IP: [69.251.152.161]
L2: 3.60% rateHello Dave:
Look 1st to the month in which the 1st distribution takes place. Then, look up 120% of the MT/AFR for the 2 preceeding months. ANY rate less than the higher of the AFR’s is an acceptable rate; right down to zero.
TheBadger
wjstecker@wispertel.net
2005-11-15 18:01, By: TheBadger, IP: [66.250.23.21]

L2: 3.60% rateTherore if I take the deduction on Nov 28,2005, 3.60% is good?2005-11-15 18:39, By: dave, IP: [69.251.152.161]

L2: 3.60% ratedave-if using 3.6% and applying it to the TOTAL value of the IRA fromwhichyou are going to draw the 72t incomefrom gives you the amount of 72t funds you need, consider this-use the highest interest rate you are allowed by 72t rules and then work backwards and determine how much you’d have to have in an IRA to give you the income you need (the amount of incomeyou got using3.6% applied toall the IRA funds)using this higher rate, then split your ONE IRA into 2 IRA’s, take the 72t from the one which gives you the income you want, and use the second IRA you are not drawing on as a reserve fund. If you do it the way you outline, you will be tying up a good bit of IRA funds unnecessarily.2005-11-17 10:42, By: john, IP: [24.182.94.66]

L2: 3.60% rateI can see a downside to splitting the IRA and drawing SEPPsfrom one part using the maximum allowable interest rate. The annual withdrawal ratefor the SEPPIRAportion couldeasily approach 7% or more. This would increase the likelihood of early depletion of the SEPP IRA , especiallyif stocks or stock mutual funds are part of the mix.
In my mind this downside has to be consideredversus including all of one”s IRA in the SEPP plan and going with a smaller yearly withdrawal rate.2005-11-17 20:38, By: Jeff, IP: [166.87.255.133]

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