combo 401k & ira

L1: combo 401k & irai am planning to retire early at 55 in Aug 2007 .i have a 401k at work through vanguard ,and a Ira with vanguard the total of the 2 on Dec 21 2006 shoud be $350000 . my question is do i use that fig on dec31 of the two in my Cal, I was going to use the amortization method.why use dec31 why not july31 in 2007,i will be 55 on June 15 2007.and vanguard told me they don”t use code 2 on 1099 either. the 401k will either give me lump sum or roll to Ira,they won”t give me periodic payments . thanks Pete2006-10-30 15:15, By: pete, IP: [4.228.123.151]
L2: combo 401k & iraTwo possible approaches to consider:
1) After separating, directly transfer the 401k toa separate Vanguard IRA to maintain unlimited creditor protection. Then use the combined IRA balances at the end of the month for your 72t calculation. You would pro rate the annual amount for the remaining months. If you don”t need to consider the full combined balance, keep a third IRA account out of the 72t universe for future emergency use.
2) If you have enough savings to get you through 2007, then don”t start the 72t until January, 08 using the 07 year end balance. That may keep some income out of higher brackets in 07, since your marginal brackets in later years will probably be lower. That will also give you 4 months to best determine your annual distribution needs for the next 5 years.
Vanguard will not use a code 2 under any circumstances?2006-10-30 18:00, By: Alan S., IP: [24.116.66.98]

L2: combo 401k & iraAlan s. thanks for your thoughts on my question I guess this is what they mean on account balance ,reasonable manner based on the fact i won”t have an account balance until i roll the 401k to an Ira in Aug. thanks pete2006-10-30 20:18, By: pete, IP: [4.228.12.122]