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Last seen: Apr 19, 2024
@larryh Correct...during periods when the AFR is below 5%. If/when the AFR creeps up above 5%, then 72t plans could use that percentage instead. As ...
Hi Larry, According to the SEPP Distribution Calculator on this site, $550,000 at AFR 4.62% with life expectancy factor of 36.2 amounts to an annual...
Steltek, thanks for bringing this idea to the forum, it's good for us all to remember there are other methods to access retirement funds. Your idea so...
Maybe Christian's question is whether SS and Medicare taxes (7.65%) are withheld from retirement distributions - and the answer is no. SS and Medicare...
Hi Christian, I checked your calculation using an AFR of 5% and life expectancy of 31.6, and the results agreed with your monthly amount of $19,423.42...
Another interesting tidbit I found is that the new Notice 2022-6 mentions annual recalculations only for the Minimum Distribution calculation method; ...
What is probably clear to long-time readers is the new 5% maximum interest rate is the figure you plug into the calculator to determine your annual di...
Great catch David8818. I updated the wording on the Applicable Federal Rate Table and What Is an AFR pages to reflect the exact wording on the IRS web...
Hi NHP920, the difference in yours and twilliams' distribution amounts is the life expectancy factor you used. You used the 2021 factor and twilliam u...
I haven't reviewed the specifics of your plan - feel free to post them or tell me where you've already posted them - but in general yes, you need to t...
Whoa! I need to caution you, twilliam, you can NOT "abandon" your plan at age 58. You must take distributions until age 59 1/2 (or 5 years if you're o...
Regarding the AFR rates, specifically the recent low rates, and the pre-2002 “reasonable” rate, here is some information to guide us in developing SEP...
Here's a clean link to the ruling referred to above: Federal Register Updated Life Expectancy and Distribution Period Tables Used For Purposes of Dete...
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 ...
Bill's book A Practical Guide to Substantially Equal Periodic Payments and Internal Revenue Code Section 72(t), 4th edition dated 2004 has been upload...
sanatsivdas, I tested both the Bankrate and our calculator site using your numbers and I think you're right: Bankrate.com rounded the interest rate fr...
Agreed. Thank you Tanko and DZalles for the great reminder. I will work on making this message stand out on the website.
I understand your concern. The wording you mentioned above is referring to the annual recalculation you will have to perform each year, not the initia...
Nitrolord, you can use any of the mortality 3 tables to calculate your distributions under the Minimum Distribution Method. Refer to Revenue Ruling 20...
An excerpt from IRB 2002-42 is now available on 72tNET.com under IRS Resources or at this link. These 2 pages describe the three 72t calculation metho...
Hi Rob, You can use the First Modification Date calculator in the menu above to calculate the date after which you can make changes to the amount you ...
Tyroneshu, I created a new thread for your questions so they're no longer hidden under the "template". Let me know if you have any trouble accessing o...
Syed, I created a new thread for your questions so they're no longer hidden under the "template". Let me know if you have any trouble accessing or vie...
Hi Ivo, I understand and thought about the same technique for my own situation. Another idea my Accountant suggested is a series of Roth conversions. ...
Hi Ivo251900, I received the same result of $7,574.55 using the information you provided in 72tNET.com SEPP Distribution calculator (with a single lif...
Hi Retper, I think the answer to your question depends on how long you have been taking 72t distributions and other factors. Would you please provide...
Hi Bramble87, the short answer is loans are not permitted from IRAs (see Knowledge Base article here
Thanks Tanko! We're feverishly trying to get the site fully functional. Thanks for being our first new member! PLEASE keep poking around and let me kn...