Annual Distributions

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L1: Annual DistributionsIf you choose an annual frequency for 72t, what month do you need to take the distribution?2005-12-14 11:05, By: Barth, IP: [162.39.175.161]
L2: Annual DistributionsAny month you choose.
Jim2005-12-14 11:08, By: Jim, IP: [70.184.1.35]

L2: Annual DistributionsI would keep in mind that your 5 year period does not startuntil your first distribution, so that might affect what month you choose. In addition, the account balance you use for the first distribution should not substantially pre date the distribution. It should be a maximum of 6 months earlier, eg. the 6/30 balance for a December initial distribution.2005-12-14 18:37, By: Alan S., IP: [24.116.165.157]

L2: Annual DistributionsI thought it was ok to use the previous year’s account balance. When I took my first annual distribution in Dec, 1999 I used the account balance from 12/31/98. This year I switched to the RMB method, took my annual distribition in Nov and used the 12/31/04 account balance.
It would be fitting that I used the wrong account balance in ’99 because apparantly I also used the wrong interest rate. At least I’m consistent. Probably in a couple of years I’ll discover that I used the wrong age for the RMB method.
Mike2005-12-17 10:26, By: daddy0, IP: [69.120.56.189]