SEPP – Amortization Schedule

L1: SEPP – Amortization ScheduleI found a descrepancy between my personal calculations and the 72T calculator. My payout was $150.00 less than the 72T calculator. What is your advice? Should I take the additional $150.00 or is there an allowable margin of error? If I don’t take the $150, will it be a bust?2001-10-18 10:34, By: TEA, IP: [127.0.0.1]
L2: RE: SEPP – Amortization ScheduleI’m very confident that our calculators produce the right numbers. With that said, depending on the IRA balance, the difference could be attributable to rounding, a difference in the calculated life expectancy, a difference in interest rates and finally a difference in calculation methods. We set up our calculators to match the calculations in 89-25. These calculations assume the first payment is made immediately. A standard mortgage amortization calculator assumes the first payment is made at the end of the first payment period [month, quarter, year, etc.] I’ve seen 72t calculators that can do it both ways and I’ve seen calculators that try as I could, I couldn’t figure out at all.

If you have your assumptions and they are reasonable in the aggregate and you follow the payment schedule outlined in the plan you adopted, I don’t think you should have any real problems. However, I also don’t offer tax advice and suggest that you visit with your own tax advisors to the extent you consider necessary.
2001-10-18 16:49, By: Gfw, IP: [127.0.0.1]