Do 72t Web Calculators Use End Period vs Beginning Period Value

L1: Do 72t Web Calculators Use End Period vs Beginning Period ValueI apologize in advance for the length. I’m using Fidelity for my IRA, they have a web calculator that cross checks with 72t.net’s calculators- all is good – using Fixed Amortization method.Officially, Fidelity calculated my SEPPamount at appx $300/yr less than their webpage calc and 72t.net’s calculators. I called to verify the calculation and the representative (who seemed knowledgeable and was very helpful) explained the difference comes from a “beginning period” value they use in the calculation, whereas most online calculators use “end period” values thatresult in a slightly higher payout number. The $300 difference isn’t as important to me as having thedocumentation of how the amount was calculated. I asked if they could send me a copy of their spreadsheet or other so i could have the documentation. They offerred me the option to changeto a “General Distribution” instead of Periodic, and at my request they will then use the web calculator amounts and i can print out the web calculator results for documentation. They say there hasn’t been a problem with IRS in usingbeginning or endperiod values as long as its consistent and the 120% AFR is complied with.I understand in theory the difference, but i’m no math or statistics wiz with these actuarial formulas, so I rely solely on web calculators like 72t.net as a backup to verify the calculations.Do you see any problems with doing this since the actual distribution payments are not technically called SEPP as long as i use the 72t rules in all respects? Or should I stick with Fidelity’s calculation even if theydon’t square with72t.net’s calculators? Thanks so much for all your help and answers to the many questions aksed in the discussion forum which help us all out.2010-01-30 02:39, By: Mike, IP: [216.80.125.206]
L2: Do 72t Web Calculators Use End Period vs Beginning Period ValueIt isn’t a question of web calculators or other calculators. It is a matter of… do the calculators produce results similiar to the IRS samples based on the assumptions used by the IRS.When IRS Notice 89-25 governed SEPP plans, the sample distributions used by the IRS werebased on the beginning of the year. When Rev. Rul. 2002-62 was released, for some reason the sample calculations for the amortization method were switched to the end of the year.Why Fidelity decided not to match the IRSI really have no idea. Will it create problems to use a number $300 off what should be used – no idea, but I also know which calculations I would use.Here is a link to a page in our articles section titled “Are Our Calculators Accurate” which give the results and assumptions used by the IRS.2010-01-30 09:57, By: Gfw, IP: [216.80.125.206]

L3: Do 72t Web Calculators Use End Period vs Beginning Period Valueyes, you’re right of course. I’ll stick with the calculations thatmatch the IRS examples. Thanks.2010-01-30 18:20, By: Mike, IP: [68.35.13.127]