Exact amount, no more and no less

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L1: Exact amount, no more and no less
New SEPP plan. DOB 1/30/1967. Date of first dist: 1/15/2020.
Thanks for all of the great information posted on this site. It’s been a big help for me in planning my SEPP.
Here’s my question: On the Planning Pointers link, it says “Once you have set the assumptions (age, interest rate, distribution method) you must take the calculated annual distribution, no more and no less”.
I’m not sure why it’s imperative to take the exact amount. If the 72t rules for SEPP plans allow you to take ‘up to 120% of the Federal Mid-Term rate’, it would seem that any annual amount that doesn’t exceed 120% of that rate would be acceptable to avoid the 10% early withdrawal penalty. I understand not exceeding the amount, but why couldn’t I withdrawal a lesser amount?
For example: If, after inputting my information into the SEPP calculator using the current 120% mid-term rate information, I can withdrawal an annual maximum of 34,128.50, then why couldn’t I adjust that amount to anything below that amount?By adjusting the amount downward, I would be well under the 120% maximum. And as long as I maintain the same amount each year, wouldn’t that be within the 72t rules for SEPPs?
2019-02-15 15:53, By: TF, IP: []

L2: Exact amount, no more and no less
You COULD adjust the interest rate in your “plan” to be less than the “MAXIMUM 120% INTEREST RATE”. BUT, this would mean that you would have to make an exact determination of the correct interest rate to use to get the applicable ANNUAL AMOUNT.
It would make more sense for you to use the “reverse calculator” on this website. This will calculate the “maximum amount” for you to use in the “SEPP UNIVERSE” for your plan, at the “maximum 120% interest rate”. This would be to your benefit, because you could then set aside in a SEPARATE IRA some portion of your IRA(s). This separate IRA could be used in the future to set up a 2nd SEPP 72-T plan, if desired, or to take some amount that you need for some unforeseen emergency. That “extra” amount would be subject to the 10% penalty, but only on that amount. If you took that “extra” amount from your main SEPP 72-T at any time before it terminates at 59 1/2, then you would be subject to the 10% penalty RETROACTIVELY on the CUMULATIVE distributions you had taken from the SEPP 72-T from the beginning.
2019-02-15 16:40, By: dlzallestaxes, IP: []

L3: Exact amount, no more and no less
Thank you for taking the time to reply to my question. I understand what you mean and I’ll take your advice by working it out with the reverse calculator.
2019-02-15 20:53, By: TF, IP: []