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Calculating 72t using RMD


acpapa93@gmail.com
Posts: 32
Topic starter
(@acpapa93gmail-com)
Illustrious Member
Joined: 2 years ago

I'm hoping someone can point me in the right direction.  I'm 48 and retiring very soon, my wife is 53.  I plan to use the RMD method for my 72t plan.  The problem that I have is that when I look at the IRS Uniform Life Table to try to get the factor that I need to use in my annual calculations I run into the problem that they only publish it down to age 70.  I can't seem to find a source for the factor I would use at age 48.  Can anyone point me in the direction of where I can find this table? 

 

I am well aware of my three options as to 72t and for me in my situation the RMD method is my preference.

 

Thanks!

2 Replies
Tracy
Posts: 19
Admin
(@tracy)
Estimable Member
Joined: 2 years ago

MinnT,  the Uniform table is for beneficiaries who are 10 years younger, so that won't apply to you. Generally, the advice on this site has been, use the Single Life Table and, if the resulting annual distribution is larger than you want/need, then break the IRA up into multiple accounts. Use the Minimum Distribution calculator on this website to determine how much you should have in your 72t Account. For instance, if your IRA balance is currently $2 million and the resulting annual distribution is too large, then break the IRA up into 2 smaller accounts (or 3 if you take the Badger's advice, see his book under Tools & Resources). Use one for the 72t and leave the other alone. If you happen to need emergency cash a few years from now it might be better to take from the 2nd account and pay the 10% penalty than bust your 72t.

Good luck! Tracy

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dlzallestaxes@msn.com
Posts: 132
(@dlzallestaxesmsn-com)
Illustrious Member
Joined: 2 years ago

GREAT ANSWER !!!!

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