Last Payment Calculator

L1: Last Payment Calculator I am confused about the results from the Last Payment Calculator. The following example [at the bottom of this post] shows a start date of 3-25-2003and a birth date of 8-2-1948, so the 59 1/2 is met by the 2/2/2003 date [I understand this date] but
1) Would the 5-year period end at midnight on the day before the 25th of 2008 [that is, on 3-24-2008] and not 3-23-2008 as shown in the example?
2) I need to tell Vanguard the last monthly distribution date, so if one told Vanguard to start the SEPP”s first distribution on 3-25-2003 and you want the distribution to be made on a monthly basis, would the last monthly distribution date be a) 2-25-2008 or would it be b) 3-24-2008 or c) 3-25-2008?
Reasoning for a): By my calculations, sixty months [5 years]of distributions would endwith the 2-25-2008th monthly distribution. So would this be the last monthly distribution from Vanguard?
Reasoning for b) and c): Where as the 5 years wouldend on 3-24-2008[I believe as stated in 1) above].So would the last monthly distribution from Vanguard be on 3-24-2008 or possibly on 3-25-2008?
3) Perhaps some of my confusion is the definition of the 5 year period; would you please clarify its exact meaning in regards to the 72t.
Thanks so much for your help in sorting this out……..Peter

SEPP Payment Modification Date
Once started,payments must continue for the longer of five payment years (from the date of the first distribution) or until age 59-1/2.Once you”ve met the five-year or age 59-1/2 point, you can change the distribution pattern, even stopping distributions altogether until you reach 70-1/2 when the Minimum Distribution Rules apply.

Date of Birth [MM/DD/YYYY]

123456789101112/ 12345678910111213141516171819202122232425262728293031/ 193819391940194119421943194419451946194719481949195019511952195319541955195619571958195919601961196219631964196519661967196819691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003

Date of First Payment

123456789101112/ 12345678910111213141516171819202122232425262728293031/ 199319941995199619971998199920002001200220032004200520062007200820092010201120122013

Attained Age on 1st Payment Date

55

5-Year Period Ends

3/23/2008

Date Age 59.5

2/2/2008

First Payment Modifiaton Date

3/24/2008

The “First Payment Modifiaton Date” is calculated as one day following the later of the end of the 5-year period, or the date you attain age 59.5 – this would be the first possible date to modify (increase, decrease, stop, etc.) the planned SEPP payments without busting the plan.

2003-02-18 07:29, By: Peter, IP: [127.0.0.1]

L2: Last Payment CalculatorIt appears that the calculator is off – unfortunately it appears to be taking leap year into account since we calculate on days. We”ll be looking at the calculator tp see if it needs to be revised.
Question… why do you have to tell Vanguard when the payments will end?
2003-02-18 14:05, By: Gfw, IP: [127.0.0.1]

L2: Last Payment CalculatorThe individuals at Vanguard retirement center have told me that my total yearly distribution must come out my IRA in a calendar year even though I”m taking it on a monthly basis. That is, if I start in,for example, May “03 and want to get $24,000 out over a year, then I need to take the $24,000 over the remaining 8 months of “03 or $3,000 per month and I told them that wasn”t my understanding and that the $24,000would to be spread over the12 months from May “03- April “04 or $2,000 per month. I told them that I would spell outmy monthly distributionschedule via a letter of instruction so they had the details of my SEPP plan.
The letter wouldstate the exact details of my monthly distribution, starting with the starting date of the first monthly distribution along with exactamount dollars and cents. This amount would be the same distribution for the next 10 months, then I would specify the 12th month distribution”s exact dollar and cents so as to meet the the yearly dollar amount needing to be distributed to the penny. Then I would tell that this same monthly distribution needs to continue for 4 addtional years andthe last distribution would end on April [or May of 2008; this is why Iwould like to know thedistribution end monthexactly]
I hope this makes sense and if not please askanother question(s). Perhaps I am not understanding something and I am specifying to much to Vanguard. Please straighten me out if you feel I am going too far on this, but I would rather over specify than under specify and have them distribute the incorrect amount.
Thanks for your assistance and I appreciate your great web site…….Peter2003-02-18 22:47, By: Peter, IP: [127.0.0.1]