72t plan to start in March 2017

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L1: 72t plan to start in March 2017My intention is to set up now a 72tplan to use the February 2017 fed mid-term annual rate (just published by IRS at 2.53%), and make the first withdrawal on March 5, 2017. I would use the January 20th or January 31st balance on my IRA accounts. Does this sound reasonable? (and is it correct? the calculators page on this website show different fed mid-term rates at this time for Feb and March 2017).2017-01-23 18:39, By: ad82por28, IP: []
L2: 72t plan to start in March 2017Additional details: Born in March 1965, planned start date of 72t: March 6, 2017 (to avoid March 5, which is a Sunday), total IRA for 72t as of January 20, 2017 is 349272.57. With February 2017 fed mid-term (annual) of 2.53%, investment rate of 4% I get a yearly$15,955.84 for amortization. Does this look ok to you? Many thanks in advance for your help.2017-01-23 19:11, By: ad82por28, IP: []

L3: 72t plan to start in March 2017You have an option of taking the entire annual distribution of $ 15,956 or 10/12 $ 13,296.66.
If you earn 4%, the income will be $ 14,000 which is about $ 2,000 less than the annual distribution. Just make sure that you provide for the extra cash flow needed.2017-01-23 22:24, By: dlzallestaxes, IP: []

L2: 72t plan to start in March 2017Yes, makes sense. gfw will probably update the interest rate on this site in the next couple of days to reflect the higher Feb rate of 2.53available for SEPPs started in March and April. In preparing for a March start, just complete your planning and do any IRA transfers needed if you will have a separate IRA for emergency needs. 2017-01-23 19:21, By: Alan S, IP: []

L3: 72t plan to start in March 2017Thanks much, Alan! I have a separate 50k IRA for emergencies (not included in the computation of the 72t), as suggested on this forum. Your guidance on this forum has been outstanding to understand the many sides of 72t.2017-01-23 19:28, By: ad82por28, IP: []

L4: 72t plan to start in March 2017One more detail that I ran into: The distribution amounts (yearly) are as follows using different calculators:
15955.82$ (72t on the Net calculator)
15956.00$ (72t Bankrate calculator)
15956.00$ (72t calcXML calculator)
Since IRS rounds up the values in their examples (Bob, age 50, etc), do you recommend to takethe distribution using the rounded number or the precise value with cents?
And if auditing later, can IRS object to either taking 15955.82$ or 15956$? (or did they object in the past) Many thanks again.2017-01-23 21:46, By: ad82por28, IP: []

L5: 72t plan to start in March 2017.18 is notlikely to make any difference to the IRS and rounds to the same figure on your tax return. The IRS rarely would bust a plan for rounding reasons just as they would not for calculators that ask for the distribution pattern, as an annual distribution can show up as slightly different than a monthly. All that said, the better choice is to withdraw the exact amount shown onthis site’scalculator.
The good news is that given identical data entries, you are getting the same figure other than rounding.2017-01-24 00:03, By: Alan S., IP: []

L6: 72t plan to start in March 2017Thank you so much, Alan! Best regards2017-01-24 00:14, By: ad82por28, IP: []