72T recalculation

L1: 72T recalculationDue to a large reduction in IRA value I am wanting to reduce my annual distribution. I started in 1999 at age 55. I now understand that I can have a one time reduction in my distribution. Is there a simple language explaination on this?
Thanks
Weberoo2003-01-03 16:01, By: weberoo, IP: [127.0.0.1]

L2: 72T recalculationHello Weberoo:
Depends on your definition of simple. In any event, following is the citation from the ruling that permits a one-time conversion to the RMD method:
“(b) One-time change to required minimum distribution method. An individual who begins distributions in a year using either the fixed amortization method or the fixed annuitization method may in any subsequent year switch to the required minimum distribution method to determine the payment for the year of the switch and all subsequent years and the change in method will not be treated as a modification within the meaning of 72(t)(4). Once a change is made under this paragraph, the required minimum distribution must be followed in all subsequent years. Any subsequent change will be a modification for purposes of 72(t)(4).”
“If a series of payments commenced in a year prior to 2003 that satisfied 72(t)(2)(A)(iv), the method of calculating the payments in the series is permitted to be changed at any time to the required minimum distribution method described in section 2.01(a) of this guidance, including use of a different life expectancy table.”
Revenue Ruling 2002-62
TheBadger
wjstecker@wispertel.net
2003-01-03 16:08, By: TheBadger, IP: [127.0.0.1]