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Double Check Online Calculators Before Relying On Them


William
Posts: 11
Topic starter
(@wjsteckerwispertel-net)
Estimable Member
Joined: 3 years ago

I have checked a number of online calculators recently and I am batting about 50% accuracy.  Almost all the calculators that are in error are, I think, caused by a failure to update their calculators to reflect:  the new TD 9930 life expectancy tables which are now mandatory, and /or failure update their mortality tables for their annuitization results.  There are two that I know to be accurate:  right here at www.72tnet.com and calcxml.com.  You can use the table of reference calculations to test other website calculators --- its real easy; if you get the same numbers its good; if you get different numbers its not. 

All of the results below are for:  $1,000,000; Age 52 with Spouse aged 50:

 

                                                                0.0%           2.5%          5.0%

Required Minimum Method

Singe Life                                                $29,155           N/A          N/A
Joint & Several Life                                  $24,155           N/A          N/A
Uniform Life                                            $21,505           N/A          N/A

Fixed Amortization
Single Life                                              $29,155       $43,761    $61,545
Joint & Several Life                                 $24,155       $39,049    $57,648
Uniform Life                                           $21,505       $36,614    $55,769

Fixed Annuitization
Single Life                                              $28,689      $43,521    $60,617

William J. Stecker, CPA

The Marble Group, Ltd.

(312) 361-0221

2 Replies
dlzallestaxes@msn.com
Posts: 176
(@dlzallestaxesmsn-com)
Illustrious Member
Joined: 3 years ago

Just a caveat. Bill's posting has to do with NEW SEPP 72-T plans starting in 2022 (or later), not for 2021 and previous plans that existed at 12/31/2021. Those prior plans do not recalculate the annual distributions, except for the few Required Distribution RMD plans.

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William
Posts: 11
Topic starter
(@wjsteckerwispertel-net)
Estimable Member
Joined: 3 years ago

DLZ is 100% correct.  Actually plans launched 12/31/21 and earlier fall into two groups:

Fixed Amortization / Fixed Annuitization --- remain unchanged --- do nothing different.

RMD plans and Annually Recalculated Amortization plans --- RMDs for sure need to adopt the new life expectancy tables for their 2022 computation.  Recalculated Amortization --- Open question.  There are probably three different possible positions:

1. Do nothing different sticking with old Life expectancies & old interest rate determination till the plan ends.

2.  Immediately adopt Notice 2022-6 including both the new life expectancies as well as new interest rates,

3.  Do nothing different in 2022 waiting for the dust to settle and adopting Notice 2022-6 on 1/1/2023.

I don't know the right answer and the AGC folk are not returning my phone calls.  Maybe I am on a do not call back black list.

 

Bill

wjstecker@wispertel.net

 

 

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