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increase to 120% in first year

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ByJ

L1: increase to 120% in first yearI started sepp withdrawls in Jan of this year. I chose monthly payments and used a calculation based on less than 120% of fmt rate. Could I at some point within this first year take a lump sum additional payment that would bring my total up to 120% if I continue to do this for each subsequent year? And if so in the subsequent years can I just average this 120% monthly or do I need to continue my current monthly payments with one extra lump sum each year? Thanks- John2005-06-24 12:23, By: J, IP: [63.195.119.175]
L2: increase to 120% in first yearHello J:
Yes you can take a “make up” distribution in year 1 to get you up to exactly 120% of the mid-term applicable federal rate.
Regarding what happens in year 2 and subsequent:
1. Under a fixed distribution plan your year 2 payment will be identical in amount to year 1 and you may distribute during year 2 as you please.
2. Under an annually recalculated plan you would most likely recalculate as of 12/31/05 to determine your 2006 distribution amount.
TheBadger
wjstecker@wispertel.net
2005-06-24 12:34, By: TheBadger, IP: [66.250.23.25]

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