August 120% Mid-Term Rate
L1: August 120% Mid-Term RateAugust, 2012… 120% Mid-Term = 1.06%, Applicable Federal Rates for 72(t) and 72(q) distributions. Click HERE2012-07-26 00:17, By: Gfw, IP: [22.214.171.124]
L2: August 120% Mid-Term RateGood grief… With QE3 looking more likely how much lower can it go?
For fun I calculated a SEPP plan at my age using a 1% MTR The difference in theAmortization method vs the Minimum Distribution Methodis only $100 a month or so over the life of the plan.2012-07-26 21:36, By: bob_85364, IP: [126.96.36.199]
L3: August 120% Mid-Term RateThe Minimum Distribution method is nothing more than the Amortization method using annual recalculation and a zero percent interest rate. That’s why the difference is so minimal – you are using 1% instead of 0%.
My personal opinion is that I wouldn’t start a plan today without using annual recalculation. The upside a few years down the line is prrobably there. The downside is the minimum distribution method.
http://72t.net/Articles/ArticleShow.aspx?WA=80102b87-c02e-4b0a-9296-6b42bd2a56a62012-07-26 21:52, By: Gfw, IP: [188.8.131.52]