Change to 72t

L1: Change to 72tAm I correct in the following:
If you wish to change your 72t income/payments yearly, then you must initially choose the minimum distribution method–the method that provides approximately 1/2 of that provided by the other 2 methods–at the outset of the plan? And, that no yearly change in payments received may be made from the other 2 methods.2003-05-13 15:06, By: Chris, IP: [127.0.0.1]

L2: Change to 72tHello Chris:
You are fundamentally correct. Just a couple of clarifications:
1. When you say “change your… payments yearly”, I interpret that to mean to recalculate your payments annualy based on an updated age and account balance.
2. Similar to the RMD method, annual recalculation when using the amortization or annuitization method was allowed preceeding 1/1/03. Because of the use of the word “fixed” in the new ruling has at least initally put a stop to annual recalculation with these other methods. I have a suspicion that this was not a “direct target” of the ruling and that we will see a return of annual recalculation sometime in the near future via a private letter ruling.
TheBadger
wjstecker@wispertel.net
2003-05-13 15:20, By: TheBadger, IP: [127.0.0.1]