Annuity withdrawl amout to use 72t rule
L1: Annuity withdrawl amout to use 72t ruleI will be taking money out of my annuity Jan 2019. My DOB is 10/22/66. It has a guaranteed rate of 6%. The value at that time will be $640,000. Will I be able to take the full 6% or $38400, and still use the 72t rule? Thank You.2017-04-10 11:59, By: Jeffr, IP: [126.96.36.199]
L2: Annuity withdrawl amout to use 72t ruleI doubt it. Is the annuity in your IRA ?
The SEPP 72-T rules result in different amounts from the 6% annuity distribution figures. If it is in your IRA, the $ 38,000 would go into the IRA account, but the SEPP 72-T annual withdrawal would probably be significantly less.2017-04-10 15:25, By: dlzallestaxes, IP: [188.8.131.52]
L3: Annuity withdrawl amout to use 72t ruleThis is not a recommendation, just a theoretical possibility.
Assume this is an IRA annuity and you do NOT have a 72t plan as of Jan, 2019. Interest rates will probably be higher then, so if you assume that a 72t calculation would generate a annual calculation of 5% of the annuity balance and the annuity pays 6% you could take another IRA and create a certain balance by partitioning the IRA into an IRA account large enough to generate a 72t distribution of the remaining 1%. Your 72t plan (SEPPuniverse)would include the new IRA and the annuity IRA with a total balance large enough toabsorb the 6% annuity distribution. You would not take anything from the IRA except a small amount to bring the total distribution up to the indicated 72t calculation.
Rough example: Annuity 640,000 Distribution 38,400 (6%)
IRA 150,000 Distribution 1,100 (.73%)
Total790,000 72t calculation 39,500 (5%)
If this is a NQ annuity, you could do the same thing using 72(q), but would need to have another NQ annuity of sufficient size. You could NOT combine a NQ annuity and an IRA in the same plan.
2017-04-10 17:21, By: Alan S, IP: [184.108.40.206]
L3: Annuity withdrawl amout to use 72t ruleThe annuity is not in a IRA account2017-04-11 00:38, By: jeffr, IP: [220.127.116.11]
L2: Annuity withdrawl amout to use 72t ruleTo get about $38,900/Year from $640,000 in 2019 at your age 53, you would need a SEPP interest rate of about 4.6% using the amortization method.
Will interest rates be at that level in 2019? Anybody’s guess.
2017-04-10 18:31, By: Gfw, IP: [18.104.22.168]