8% withdraw on 72T eating away balance

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L1: 8% withdraw on 72T eating away balanceMy mother set up a 72T distribution from an IRA with Hartford in 2001 after she was laid off from her 27 year career.She chose to receive equal payments over her life because she was too young to take penalty free IRA distributions. My mother chose to receive 8% of her original investment annually (she believes it was based on the prime ratenot her age or any other calculation). Is this amortization or annualization method? Is she eligible to recalculate her annual withdraw?Based on the recent market declineher account has lost half of its value. If she continues to withdraw 8% of her original investment each year, the account will be down to a zero balance before she turns 59 1/2. Can she change the percentage or stop distributions completelywithout paying penalty on all previous withdraws? What options does she have to avoid emptying her Hartford IRA before she is even 59 and 1/2?2009-01-21 21:33, By: KaraECU1, IP: []
L2: 8% withdraw on 72T eating away balance>>Is this amortization or annualization method?Based on your description, it is neither the amortization nor the annuity method.If it is neither method, she may have other problemsas it may be a busted SEPP.Start by going back to when the plan was established and locate any documentation that she was given. If you have her date of birth, the date of the initial distribution and the initial balance, you may be able to back into the calculations. Alsocheck the last 1099 from Hartford – if they are giving a code of ‘2’, they may have the original paperwork. I would alsoask Hartford if shecan make the one-time switch and see what kind of response you get.2009-01-21 21:49, By: Gfw, IP: []