L1: Distribution FactorI just started (existing) SEPP first distribution on 6-10-15. Born 2-11-63.
I just wanted to review my calculations prior to the end of the year. I put the data into the calculator and the results are different than my original calculations? As Ireviewed my input data for any mistakes I noticed that the Distribution Factors for Amortization Method and Annuity Method are significantly different than my original results from the calculator. The Distribution Factor for Minimum Distribution Method reflects my life expectancy from the 1.401 (a)(9)-9 table at 32.3 formy original calculations and the current calculator results.
Playing around with the calculator checking the “Use Uniform Table” NO gives me 32.3 on the Min Dist. Method and 23.488 for Amortization. If I “Use Uniform Table” YES it gives me 44.60 Factor for Min Dist Method (which does not match table 1.401 mentioned above) and 29.103 Distribution Factor for Amortize method.
I thought that is was pretty clear that in my case 32.3 would be used in any of the 3 methods? What am I missing? Thank you.
PS I found where the 44.6 Factor came from. Uniform life table in Appendix A of Rev. Rul. 2002-62. So I guess I should”Use Uniform Table” YES in the calculator.
That still does not clarify (at least to me) depending on what life expectancy table is used, don’t all 3 methods use the same Distribution Factor?2015-11-03 22:13, By: jiyuu, IP: [184.108.40.206]
L2: Distribution FactorThere are a lot of reasons why they may not match staring with the interest rate. Once you start playing with the joint there is a whole new set of reasons.
If you have a printed copy of the screen where you input your calculations let me know and I will send you an email address where you can send it. 2015-11-03 22:42, By: Gfw, IP: [220.127.116.11]
L3: Distribution FactorThanks for the quick response. I have to go in a minute but a quick question. If you have to use a life expectancy table (no matter what one the IRS allows you to use) why does the calculator give you the option to”Use Uniform Table” YES/NO?
I will send you the screen shot if you like. Will you see my email address? or do I need to give it to you?2015-11-03 23:25, By: jiyuu, IP: [18.104.22.168]
L4: Distribution FactorThe Uniform Table is merely a variation of the single life table that accounts for joint life expectancy that assumes that one spouse if 10 years younger than the other – zone. If there is over a 10 year difference, then actual ages are used in determining the joint life table.
Joint tables are typically used for IRA minimum distributions and not for SEPP distributions.
All the tables used for IRA calculation are based on the mortality table that was issued as part of Rev. Rul. 2002-62. 2015-11-04 00:20, By: gfw, IP: [22.214.171.124]
L5: Distribution FactorCorrection for my first sentence: All of the life expectancy tables (single, joint & uniform) are based on the mortality table as published in 2002-62.2015-11-04 00:47, By: gfw, IP: [126.96.36.199]
L6: Distribution FactorI am using the Amortization Method with no beneficiary.
When I prepared the original SEPP I used the IRS website irs gov/retirement-plans/retirement-plans-FAQs-regarding-substantially-equal-periodic-payments#5
It saysto use “Bob’s single life expectancy (34.2) (obtained from Q&A-1 of I.T. Regs. 1.401(a)(9)-9 using age 50)” This is the table I used. Single Life Table for a Distribution Factor of 32.3 for myself
The uniform life table in Appendix A of Rev. Rul. 2002-62 (Table used on 72t site calculator) gives a Distribution Factor of44.6
The 72t site calculator confirms my 32.3 Distribution Factor (not using the uniform table) and 44.6 (using the uniform table.) for the Minimum Distribution method.
For the Amortization Method (not using uniform table) Distribution Factor=23.488 Using the uniform table Distribution Factor=29.103
I understand why the Distribution Factors change between Minimum Distribution, Amortization and Annuity Methods.
My question is simply use the “Uniform Table” on the site or should I continue to use the 1.401(a)(9)-9 table mentioned on the IRS website for my Distribution Factor? (The site says you can use Uniform, Single Life or Joint Life Last Survivor) The example on IRS site for Amortization Method says use Single Life 1.401(a)(9)-9
They don’t make it easy do they?
Thanks so much for your time.
2015-11-04 02:52, By: jiyuu, IP: [188.8.131.52]
L7: Distribution FactorAfter reading your post L4 you answered the question. I am single with full custody of my son who is 11. So no beneficiary age can be used on the site calculator. None needed.
Use the Uniform Life Table on the site.2015-11-04 03:01, By: jiyuu, IP: [184.108.40.206]
L8: Distribution FactorGfw thanks for your input. I was confident 8 months ago on setting all this up. Getting near the end of the year as I mentioned I wanted to review my plan. Seeing different numbers spooked me a bit but after reviewing my material and going through the process I feel good about my original set up. A good nights sleep will do that. Thanks again.2015-11-04 15:43, By: jiyuu, IP: [220.127.116.11]