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Double Check Online Calculators Before Relying On Them
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
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
Single Life $28,689 $43,521 $60,617
William J. Stecker, CPA
The Marble Group, Ltd.
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.
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.