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Valuation Date – interest rate assumption

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ByKWS

L1: Valuation Date – interest rate assumptionClient retired 6/30/02. Wants to use his 7/1/02 IRA value and 120% of Long term rate as of 7/1/02 – take a 1 month distribution on by 12/31/02. How does that sound? Also – can he use a higher interest rate assumption of let”s say 7 to 7 1/2%? 2002-11-04 14:03, By: kws, IP: [127.0.0.1]
L2: Valuation Date – interest rate assumptionFrom Notice 89-25… “at an interest rate that does not exceed a reasonable interest rate on the date payments commence”
I”d be be very comfortable with 5.89% which is 120% of the long term rate for last month. Much beyond that, I think you might be stretching. Contact the IRA Trustee/Custodian and find out how far they are will to go.2002-11-04 14:14, By: Gfw, IP: [127.0.0.1]

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