Finally pulling the trigger

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L1: Finally pulling the triggerGentleman,
Please confirm that I’m correct in my calculation, and I will proceed.
DOB: 10/25/1962 = 52
Amortization method
Single life expectancy
1.57%
Recalculation? Unsure as how I might proceed at this moment
$281,838.64 as of 7/2/2012
Annual Distribution = $11,191.17
I’m using 7/2/2012 as a balance date, because it was the first date available after being transfered from the Carpenters union. I feel confident in the numbers, but a confirmation would be appreciated.
Thank you,
Scott2012-07-03 14:08, By: Scott, IP: [71.142.132.127]

L2: Finally pulling the triggerIf the information that you posted is correct (and I don’t believe that it is) than I don’t get your numbers. If your date of birth is 10/25/1962, then you are age 50 and not 52. Based on the rest of your post and using age 50, I get an amortization payment of$10,713.38
If your date of birth is 10/25/1960, then you are age 52 and I get the same answer that you posted, $11,191.17
Also… the 1.57% is only valid if the distribution is made before the end of July.2012-07-03 14:27, By: gfw, IP: [205.178.67.189]

L3: Finally pulling the triggerGFW,
Sorry for the mistake, and thank you for the confimation. My DOB is 10/25/1960. My wife is 1962.
The distribution will be applied for with Fidelity on 7/12/2012 when my link to my bank is approved, so the 1.57% should be good. I was worried that I might not get it done in time, but it has worked out.
Another question: Is it unethical to wait and see where the interest rates go until deciding on using the recalculation method or not? Also, how critical is it to document a recalculation date?2012-07-03 15:45, By: Scott, IP: [71.142.132.127]

L4: Finally pulling the triggerThe proper time to define a plan that uses annual re-calculation is when the plan is adopted. Any other time you may be inviting questions if an audit occurs.
Where interest rates will be next year could only be a guess, but how much lower can thay really go?
Play with the numbers and see what could happen. In the calculator, change your DoB to 1959 (you will be one year older next year), use an estimated value and play with different interest rates.
The real question is… can you live with the results if rates go down by .75%, up by .75% or stay the same.2012-07-03 15:53, By: Gfw, IP: [205.178.67.189]

L2: Finally pulling the triggerJust a thought – Since this seems to be a new account and he wants to start withdrawals in a relatively short period of time, should he be concerned with possible trailing dividends if the original transfer was from a 401k to this account?2012-07-03 16:25, By: meb24, IP: [173.49.78.112]

L3: Finally pulling the trigger”Just a thought – ”
Actually this is a really good thought and could cause real problems. Scott should be sure that all trailing dividends or any cash generated from any source that might “follow the trail” from the source account (assumed to be a 401(k)) into his IRA account are complete. He could get a refund of some kind of fees (not likely) and that could bust the plan.
If it is from a qualified plan and the transfer has just occurred, then he should do one of two things: 1) Don’t start the SEPP Plan by taking any distributions until he is sure no additional funds will be coming along or 2) Open a second IRA for the SEPP Plan and transfer funds from his existing IRA which will become an “emergency” account. In my opinion, Option 2 is the safest.
Jim F2012-07-03 18:18, By: Jim F, IP: [70.167.81.119]

L4: Finally pulling the triggerThank you MEB, and Jim F.
Due to your concerns I called the Carpenters, and was assured that once it’s transfered that is it.
It was part of the Carpenters Annuity Trust Fund for Northern California. It was money held on my behalf that would have been annuitized had I done nothing. By rolling it over I have control, and it is final.
These funds will supplement my pension.2012-07-03 21:46, By: Scott, IP: [71.142.132.127]