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Amount change to 72-t

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ByBeetle

L1: Amount change to 72-tClient is in 4th year of 72-t, drawing $2,000. monthly. Stop date is March 2005. He wants to reduce the distribution to the minimum. Age 63, and will be 64 in December 2004. As of 12/31/2003 his 72-t balance was $39,980. He also has a 2nd traditional IRA, untouched. That balance on 12/31 was $18,059. I see in Pub 590 there is the Uniform Lifetime Table, indicating this client has a life expectancy of 33 years. Dividing the 72-t balance by 33 years equals $1,212. annually, or $101. monthly. Is this acceptable to the IRC? Thanks2004-01-12 15:09, By: Beetle, IP: [24.92.250.7]
L2: Amount change to 72-tRev.Rul 2002-62.03(b) allows a one time change to the Minimum distribution method. You can find a copy of 2002-62 in the left menu of the main site – there is also a calculator – use the account balance as of 12/31/2003.
2004-01-12 16:52, By: Gfw, IP: [172.16.1.70]

L2: Amount change to 72-tGfw… I”m OK with 2002-62 except this part: The Code refers to the choiceof three mortality tables; UNIFORM LIFE, SINGLE LIFE, & JOINT LIFE EXPECTANCY. When I calculate the numbers to get the lowest distribution, Uniform Life prevails. But this option does not appear on the financial institution”s distribution form, nor do I see it on the calculators here. What gives? Thanks Beetle!2004-01-13 19:19, By: Beetle, IP: [24.92.250.7]

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