3.60% rate

L1: 3.60% rate2 issues in split question 1-if don’t split and need more than 72t,may have to violate 72t to get funds, unless have other source for money
2-whether IRA split or not , you must use the ENTIRE value of your IRA fundsto figure you actual withdrawal. For example,if you have $100,000and apply 3.6% and get a payout of $5,000you have a5% withdrawal rateand if you earn 5% or more, you will break even orhave some gains. On the other hand, if you do the split and ittakes only$70,000to provide the $5,000/year, your withdrawal rate would be 7% but 7% of the 72t account only. You would still have $100,000 in total IRA value which gives you the same 7% withdrawal rate on your tatal IRA value of $100,000. Even if you made less than 7% on the 72t account and thereby lost value, to see if you’re losing overall, you’d have to take the non-72t IRA value into account and usually when you do that, I have found that the gains in the non-72t acct. offset the losses in the 72t acct. Either way you do it, you can have an overall decline in value in the investments in both IRA’s don’t perform well. Hope this provides some perspective and helps.
42005-11-18 10:40, By: john, IP: [24.182.94.66]

L2: 3.60% rateI don’t totally understand the post, but_
You can indeed split an IRA and only use a portion of the IRA for a SEPP. I really don’t know where the 5% and 7% come from, may just add a little to the confusion. If there is a 100,000 IRA it could be split into two accounts for example 10,000 and 90,000.
The SEPP payment would then be calculated using the 90,000 amount and the 10,000 could be held for emergencies, etc. The payment would be expressed as a dollar amount based on one of the three calculation methods and the interest rate allowed. 2005-11-18 12:46, By: Gfw, IP: [172.16.1.71]

L2: 3.60% rateJOHN:
You apparently do not understand the concept of SEPP 72-T. You only calculate the payments based upon the IRA balances that you set aside into a SEPARATE SEPP 72-T IRA ACCOUNT. The rest of your IRA accounts DO NOT COUNT in the calculation !!!!!! You should actually work backwards by starting with how much you need, the interest rate to use, and therefore the amount to set aside in the SEPP IRA ACCOUNT. Leave the rest outside of this restricted account.2005-11-18 17:16, By: dlztaxes, IP: [4.175.9.236]