Amount of first withdrawal

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L1: Amount of first withdrawalIf I start a 72(t) plan, what is the minimum withdrawal that is needed to capture the current interest rate? For example, the current rate is 4.23, but will drop to 4.13 in April. How much do I need to withdraw by the end of Mar to capture the 4.23 interest rate.
Personal Rant: If the IRS is going to require us to use a mid term rate, that represents interest rates over 5 years of so, and we can start the SEPP anytime in the year and take the full amount, as well as base the value on any value between 12/31 of the previous year and the first withdrawal date, we should be able to use any rate for 12months or the months from January to the month of the withdrawal, not just 2. Seems rather inconsistant, but then that’s the IRS.
Rant over. I feel better now. Thanks, 2004-03-09 08:21, By: woolybully, IP: [136.171.122.16]

L2: Amount of first withdrawalHello wooly:
RR 2002-62 only says that one must use a maximum of 120% of MT/AFR for either of the two months preceeding the month “in which the distribution(s) begin”. They don’t say how much that 1st distribution needs to be. Further, the IRS has no provence (e.g. no rules or authority) on the intra-year distribution frequency. Therefore, how about $1.00? On a more reasonable note, I would think a month’s worth would be adequate.
TheBadger
wjstecker@wispertel.net
2004-03-09 08:26, By: TheBadger, IP: [38.116.134.130]