# 1 time change to 72t

L1: 1 time change to 72tI am 54, I started taking payments in 2003. i would like to take a 1 time change to my 72t to a new distrb amount, how to I go about this?2013-10-10 14:02, By: Donk, IP: [98.117.56.215]

L2: 1 time change to 72tAssuming you are on Amortization or Annuitization, and have been taking same amount each year, your only option is the “one time”switch to Minimum Distribution method, which may reduce your payment from what you are getting. Is that what you are trying to do? I do not think it will increase your payment, but I could be wrong. You started when interest rates were probably much higher than current ones, (mine was over 5% in 2006) so the payment reduction (if that is what happens) may be more than you can handle. Also, you may have already taken too much this year to be able to switch to Minimum Distribution for 2013. Plug in your 12/31/2012 balance and age you would attain during 2013 into Gordon’s calculator and see what it yields for 2013 payout. If the MD payment for 2013is more than what you took so far this year, you could still change this year, and only take the differene between now and 12/31/2013, but if not, you would need to make the change for 2014, using the 12/31/2013 balance and redo the calcs with correct age for 2014. Remember that this calc has to be done each year (once you switch) until your plan is over, and you have to submit the new figure to your IRA custodian EARLY each year. When I made a chng to MIN DIST on one of my 2 72T plans for the last year, I instructed custodian (in late DEC) to stop my January payment until I submitted a new figure to them in January, and that worked well.2013-10-10 14:26, By: Ken, IP: [100.0.1.122]

L3: 1 time change to 72tI do take fixed payments every year. I am looking for a reduction. I thought if I take this change it would be the same lower amount every year? Do I have to file any paperwork with the IRS?2013-10-10 14:35, By: Donk, IP: [98.117.56.215]

L4: 1 time change to 72tNo paperwork.

But, you need to recalculate the payment annually based on attained age and previous 12/31 year end balance.2013-10-10 14:52, By: Gfw, IP: [205.178.51.82]

L5: 1 time change to 72tI looked at the clculaters on this forum and can not figure out which one to use, can you walk me through the calculator? I am 54 in 2013 and 12/31/2012 balance was $262,300.

Thank you for your help2013-10-10 14:57, By: Donk, IP: [98.117.56.215]

L4: 1 time change to 72tIf you want a valid response, then you must provide usable information.

1. How much have you taken already in distributions in 2013 ?

2. How much was your balance at 12/31/2012 ?

3. How much is the Minimum Distribution method calculation for 2013 ?

4. If #1 > # 3, then you cannot change for 2013. You can only continue your 2013 distribution program, and must wait until 2014 to change to the Minimum Distribution method for 2014 and future years.

5. If #1< # 3, then you can change to the Minimum Distribution Method for 2013, and your distributions for the rest of 2013 will be the difference between # 3 minus # 1.
6. Under the Minimum Distribution method, you must recalculate your distributions for each year. So, for 2014 you will use the 12/31/2013 balance, for 2015 you will use the 12/31/2014 balance, etc. Under the fixed method your annual amount would always be the same. Under the Minimum Distribution method, the annual amount changes every year, based upon your age, the interest rate, and your previous year end balance.
Most, if not all of this, is explained elsewhere on this website.2013-10-10 14:58, By: dlzallestaxes, IP: [72.94.41.159]
L5: 1 time change to 72tI take a 1 time payment in November of each year. I would like to take a fixed amount yearly if possible.2013-10-10 15:05, By: Donk, IP: [98.117.56.215]
L6: 1 time change to 72tYou have two choices...
Keep the payment tha you have; or
Switch to the Minimum Distribution method and recalculate annually.
There is no third choice except to bust the plan.2013-10-10 15:13, By: Gfw, IP: [205.178.51.82]
L6: 1 time change to 72tYour timing is perfect, and will not be affected by any distributions for 2013 because none have been taken yet in 2013.
Someone else will give you the amount you would take for 2013 in Oct, Nov, and/or Dec.
In early Jan you will make another calculation for 2014, which will probably be lower than the one for 2013 because of lower interest rates, but it could be higher or lower based upon how much the balance increased or decreased during 2013 minus the 2013 distribution you will be taking.
While YOU "might like to take a fixed annual amount after changing to the lower Minimum Distribution method", you are not allowed that option. You will be REQUIRED to recalculate your annual distribution EVERY YEAR.2013-10-10 15:16, By: dlzallestaxes, IP: [72.94.41.159]
L7: 1 time change to 72tYou need to use the SEPP calculator on this site for all payments under SEPP (72T), and it is a choice under Calculators tab at top, so fill it out with your data. I got about $8,600 for MD in 2013 (as I recall) when I did it, but you need to do it yourself. To correct a point by DLZ in his last post, my recollection is that the interest rate factor is not used in the calculation of Minimum Distribution payments, so it has no effect on the payment result, while it does affect the other two methods.When the results show after you press CALCULATE above the fill in fields, it will give you all three results.2013-10-11 03:56, By: Ken, IP: [100.0.1.122]
L8: 1 time change to 72tThank you everyone2013-10-11 13:59, By: Donk, IP: [98.117.56.215]