L1: 72t distributionI received a cash buyout from my company lum sum I am interested in doing a 72t could someone tell me what rate as of January the distribution is and what is the difference between annuitization and amortization thank you will februarys be higher and is it worth waiting2011-01-04 22:15, By: bill, IP: [184.108.40.206]
L2: 72t distributionPlease provide all of the pertinent information if you want an informed response.
Date of Birth
Date of Distribution
Type of Plan
Was there any company stock in the plan ? If so, what was the company’s cost basis ?2011-01-05 01:28, By: dlzallestaxes, IP: [220.127.116.11]
L3: 72t distributiondob 04/20/1958 distribiution was given to me oct 1st i am just setting up the 72t this year500,000.002011-01-05 01:41, By: bill, IP: [18.104.22.168]
L4: 72t distributionBill:
Please clarify your statement “distribiution was given to me oct 1st.”
Did your company’s custodian send you a check, payable to you for the lump sum and you still have the funds in your checking account or you still hold the check,or did you set up and fund a”Rollover IRA” by either direct rollover or trustee-to-trustee transfer?
If you received a check, payable to you, and you didn’t complete a direct rollover to an IRA account, including replacement of the mandatory 20% tax withholding, then any discussion of setting up a 72(t) at this late date is a moot point.
Jim2011-01-05 20:11, By: Jim, IP: [22.214.171.124]
L5: 72t distributionAs Jim asked, did you get a check for $ 500,000 or $ 400,000 after the 20% withholding ?
Was it a trustee-to-trustee transfer, or was the check made out to you ?
If the check was made out to you, what accountdid you deposit itinto ?2011-01-05 20:47, By: dlzallestaxes, IP: [126.96.36.199]
L5: 72t distributionI put my money in an IRA with smith barney now i want to start taking out and I dont know at what percent I should and is ammortization the best way I believ Jan was 4.427 can yo utell me what feb 1st would be so I could take out on March 1st thank u2011-01-28 15:38, By: bill, IP: [188.8.131.52]
L6: 72t distributionThe FEB 2011 max “120% mid term rate” you can use in your calculations for a plan that starts in MARCH or APRIL 2011 is 2.80%, as shown in the table of actual rates on this site. They have not been in the 4’s for a long time. Amortization yields a slightly higher payout and annuitization. Choose single life option for highest result. Use the age you will attain by 12/31/2011 in the calcs. It sounds like you need to do more research so you get a better understanding before initiating this plan, and make sure someone verifies the result of your calculations before you use them with your custodian. KEN2011-01-28 15:57, By: Ken, IP: [184.108.40.206]