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72t Calculators Give Different Totals

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Byrich

L1: 72t Calculators Give Different TotalsI have plugged identical figures into 5 different 72t calculators. All come up with the same totals for the Life expectancy method and the Annuity method. However, for the Amortization method, three of the five come up with one figure and the other two have a second figure.These agree:http://72t.net/ED_Calc01.aspxhttp://www.yyyz.com/default.asp (72t Demo Tool)Also a speadsheet formula I found somewhereThese agree with each other, but with a different figure than above for amortization:http://www.dinkytown.net/java/Retire72T.htmlhttp://calc.usbank.com/servlet/Show?page=Retire72T_pj.htmlAny ideas on what the difference might be and which is the truly accurate one?ThanksRich2001-11-16 13:47, By: Rich, IP: [127.0.0.1]
L2: RE: 72t Calculators Give Different TotalsFirst let me say that the demo you downloaded at yyyZ.Com is also our program. It is designed for use on a local computer and uses the same calculation engine used by our web calculators.Now as to which ones are right – maybe both, but only maybe. We designed our calculators to use the same approach used by the IRS when they published Notice 89-25. Check out the numbers. Age 50, 8% interest and $100,000. The IRS (and our calculators) come up with an annual payment of $8,679. Is the right answer? The IRS thinks so.Why the difference? If you take a pure mortgage amortization formula, the payment is due after the first interest period – at the end of the 1st month, quarter, year, etc. However, the IRS calculation says the 1st payment is due today, not after the 1st period. It will make a difference. Question, if the first payment is due today does it make sense to assume that it won’t be taken until next year? I’ll let you be the judge. Which program is right? Again, I’ll let you be the judge.2001-11-16 14:12, By: Gfw, IP: [127.0.0.1]

L2: RE: 72t Calculators Give Different TotalsThanks for pointing out which calculator agrees with the figures presented in Notice 89-25. I should have caught that myself. I hope my CPA comes up with the same figure. Great web site!Thanks again2001-11-17 20:30, By: Rich, IP: [127.0.0.1]

L2: RE: 72t Calculators Give Different TotalsIf he doesn’t, please feel free to have him visit our site. 2001-11-18 04:42, By: Gfw, IP: [127.0.0.1]

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