5 year redo payment method

L1: 5 year redo payment methodat the end of 5 years and the chance to chance payment method is the current amount in your account used or the beginning amount. i.e if 750,000 was the start up amount and at the end of 5 years their was 1,000,000(got a great money manage). which figure is used to to the chance of payment?2007-02-06 18:56, By: publixguy, IP: [64.12.116.143]
L2: 5 year redo payment methodHello Publixguy:
I think you are referring to the one time per SEPP plan conversion to the minimum method. If so, this can be done for any year after the 1st year and one would then use the immediately preceeding 12/31/xx account balance divided by one”s new life expectancy for the current year.
TheBadger
wjstecker@wispertel.net

2007-02-06 19:36, By: TheBadger, IP: [72.42.66.182]

L2: 5 year redo payment methodPublixguy,
If you are still under age 59 1/2, the Badger hit the nail on the head.. that is the only change you can make until after that magic SEPP age and after having taken at least five years of withdrawals on your 72(t) plan. Changing to the Minimum withdrawal method usually reduces your yearly withdrawal, but may have different results for you considering the 33% increase in the balance you will use for your calculation. If you are now over 59 1/2 and have taken 5 full years worth of withdrawals, and more than 5 years has passed since your first payment was received, then you can take whatever amount (or no amount) out of this IRA without incurring the 10% penalty tax, adn do not need to do any “calculations”, since your SEPP is over. You will simply pay normal taxes on any withdrawals that you take from that point forward. Note that some people take annual payments, so after 4 yrs and a few days, they have received their “5 years worth of withdrawals”, but cannot take any more money without “busting” their SEPP until the full five years of the clock has run after first payment was received.Does this help answer your question? KEN
2007-02-07 03:36, By: KEN, IP: [68.160.2.87]