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Monthly Rate and Amount Allocated to SEPP Plan Que

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Byjr

L1: Monthly Rate and Amount Allocated to SEPP Plan QueTwo questions I have are:
1 – The calculator uses theyearly AFR to determine the allowable yearly dollar distribution and then divides it by 12 to get a monthly dollar distribution. My question is this: one site provides a monthly AFR along with a yearly AFR, so when would one ever use the monthly AFR if the yearly AFR gets one to a monthly distribution (i.e., yearly dollar distribution divided by 12)?
2 – If the month end balance for ones IRA does not produce a yearly dollar distribution that is evenly divisible by 12, then should one round up or should one round down when determining the monthly dollar distribution? For example, if the IRA balance produced a $1,202.21 for a yearly dollar distribution; dividing this by 12 produces a monthly dollar distribution of $100.18416. Would one use $100.18 or $100.19? or is is OK to use the rule if 5 or greater, then round up; otherwise round down?
Thanks, JR2003-05-09 08:54, By: JR, IP: [127.0.0.1]

L2: Monthly Rate and Amount Allocated to SEPP Plan QueHello JR:
Regards #1; the IRS does not seem to care much about translation from annual to quarterly and/or monthly numbers as the math causes almost insignifcant differences.
Regards #2; similarly, the IRS does not care if you truncate or round. By definition “de minimus” is less than $1.
TheBadger
wjstecker@wispertel.net

2003-05-09 09:01, By: TheBadger, IP: [127.0.0.1]

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