72t

L1: 72t

15,202.70 [$1,266.89/mo]
1] Minimum Distribution Method

$32,716.02 [$2,726.33/mo]
2] Amortization Method

$32,200.36 [$2,683.36/mo]
3] Annuitization Method
The Amortization Method is higher than prefered4% withdrawal rate.
This calculation is based on 500,000 IRA with the SEPP based on 475,000.
I will only need this amount untilMy Social Securityat age 62.
Once that start I will be able to takeonly about 15,000 our of the IRA.
I would like to start the SEPP in July of 2008.
Am I thinking rational?
I know a lot will depend onthe stock market. I plan on allocating 60 percent to stock.
Thanks
Pat Walker

2007-08-06 07:03, By: Destiny1, IP: [74.229.73.188]

L2: 72tYour age on your birthday in 2008 will determine how long you must continue your SEPP distributions. You must continue them for the longer of 5 years from the start date or to age 59.5, even if you begin to receive SS benefits before the 5 years is up. If the SEPP plan results in taxation of your SS benefits, perhaps you should delay filing for SS until the SEPP term has been satisfied.
In addition, you cannot assign the SEPP to only part of an IRA account. Your opening balance for the SEPP can be different than the day you begin payments, but you would typically use a month end balance shown on a statement not older than 6 months from the date you start payments. You must base your calculation on theFULL account balance on that date, not part of the balance. You can partition your IRA into separate accounts, andthat would be wise to do as you could then maintain an IRA account outside the SEPP for emergency needs. That provides you with flexibility to avoid busting your SEPP in many cases.
2007-08-06 10:24, By: Alan S., IP: [24.116.165.60]