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72t calculations – grateful for input

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ByKeith James

L1: 72t calculations – grateful for inputThe72t on the Net calculating software confuses me. The confusion arises because the software offers an input field that asks for the percentage of the qualified account that is to be used for calculating the distribution. This implies to me that you don’t have to calculate the distribution basedon the total value of the qualified account, which is contradictory to my understanding.
The software also asks for the “investment rate of return” and then asks for the “IRS penalty interest rate”. I don’t know what this “IRS penalty interest rate” is and or how much it is, and how and when would it be applied or what triggers it. Can someone shed some light on this?2005-04-08 12:17, By: Keith James, IP: [66.126.230.203]

L2: 72t calculations – grateful for inputThe confusion arises because the software offers an input field that asks for the percentage of the qualified account that is to be used for calculating the distribution. You must be referring to Amount Allocated to SEPP Plan ۝ which is a dollar figure, not a percentage.
This implies to me that you don’t have to calculate the distribution based on the total value of the qualified account, which is contradictory to my understanding.The account can be sub-divided. You may want to check out our FAQ and even better, buy Bill’s book.
I don’t know what this “IRS penalty interest rate” is and or how much it is, and how and when would it be applied or what triggers it. You may want to review the HELP file on the calculator page, the FAQ section or Bill’s book. The IRS publishes the rate quarterly.2005-04-08 12:23, By: Gfw, IP: [172.16.1.73]

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