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Date of Birth: Nov 1964
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Age: 57 (by year end)
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married paying quarterly tax estimates
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72t Method: Amortization, starting 5/1/2021
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Life table: Single
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Stub Year? Yes, 2021 (going to take 8 months worth of the yearly dist)
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Annual Recalc*: no
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AFR* Rate: 1.6
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Balance(s)*: $989,466 in an old rollover 401k from former employer. Not planning to touch my IRA or my other 401k from my most recent employer. Have cash on hand and rental income as well to live on
I didn't look at the IRS website, but you are correct that the new life expectancy tables were deferred from 1/12021 to 1/1/2022.
In your posting, and your calculations, however, you are using an incorrect AFR. 120% of the April 2021 interest rate of .89 is 1.068, not 1.68.
Redo your calculations, and then adjust the amount that you are taking for the rest of the year to come up to the correct 8 month Distribution. If you are already over the that amount, then I suggest that you just take the balance for the ANNUAL DISTRIBUTION.
P.S. With all that Congress has imposed on the IRS with additional responsibilities, but no additional funding, and reduced personnel in total and on site, this is only one of many screw ups by the IRS. All tax professionals are annoyed at the issues that the IRS has caused, not the least of which is millions of unopened envelopes, and unprocessed tax returns and refunds.
Thank you for your reply. You are right, I wrote in the post 1.6 but I meant 1.068, and 1.06 which is the number I used in my calculation. As you suggested, I am going to end the monthly payments and take one last payment to balance out the distribution so that it's the same each year (except my stub year which will be 8 months worth). Thank you.
