How to change interest rate if I already started my 72t SEPP?

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L1: How to change interest rate if I already started my 72t SEPP?Hello. I started my 72t SEPP this year (Jun 2016)back when the fed mid-term rate waslower, and when Iturned52. If Icould somehow adjust my plan to start in Jan of 2017 (I’m still 52),I could usea higher 2.35% rate in my amortization calculation to yield a higher payout.
Before writing this off as “too bad I lose”, I wanted to ask if there was anyway to adjust my plan’s rate without IRS saying I changed my plan. Appreciate your thoughts.2016-12-24 21:47, By: mcopley, IP: [76.230.65.119]

L2: How to change interest rate if I already started my 72t SEPP?Short answer: No
You could bust the current plan, pay the penalties and start a new plan in January. With that said, interest rates will probably continue to rise during 2017. 2016-12-24 21:58, By: Gfw, IP: [216.80.120.234]

L2: How to change interest rate if I already started my 72t SEPP?To use a new rate in January, all you can do is to not report the first 72tplan and pay the penalty on distributions you have already taken, then start a new plan in January for which you would likely use the 12/31/2016 balance. But the highest rate in January is 1.76. Where does the 2.35% come from? You would get more from your new age attained in 2017 though. Don’t know if paying the penalty is worth the additional payout, but if you already need a higher payout, you would probably eventually bust the current plan anyway since it would have another 7 or 8 years to run.2016-12-24 22:15, By: Alan S, IP: [174.126.90.174]

L3: How to change interest rate if I already started my 72t SEPP?I am not sure where the 1.76% for January came from. If you look at the IRS publication Rev Rule 17-02 (released earlier this week), it clearly has 2.36% as the 120% mid-term rate for January 2017. If that is not the right place to get the interest rate data then I need to be recalibrated since that is what I am planning to use when I set up my 72t.2016-12-25 14:58, By: UnclePhool, IP: [69.254.134.74]

L4: How to change interest rate if I already started my 72t SEPP?UnclePhool,
Alan S is an expert. A SEPP starting in January has to use either the NOV or DEC 2016 rate. If you wait until FEB for first payment, you can use either the DEC ’16 or the JAN ’17 rate. GFW has a note explaining this requirement with the rates as I recall.
Click on “Interest Rates” tab at top of the page, then click on “120% Mid Term Rates” on left, and read the first paragraph for the explanation.
2016-12-25 19:33, By: Ken, IP: [173.48.159.59]

L4: How to change interest rate if I already started my 72t SEPP?UnclePhool…
Revenue Ruling 2002-62 and SEPP Plans post 12/31/2002: The interest rate that may be used is any interest rate that is not more than 120 percent of the federal mid-term rate for either of the two months immediately preceding the month in which the distribution begins.
The maximum interest rates where the initial plan distribution occurs during the following time periods are: 12/01/2016 – 12/31/2016: 1.61% | 01/01/2017 – 01/31/2017: 1.76% | 02/01/2017 – 02/28/2017: 2.36%2016-12-25 20:21, By: Gfw, IP: [216.80.120.234]

L5: How to change interest rate if I already started my 72t SEPP?Got it. Thanks. I misunderstood how you were describing when the interest rate applied.2016-12-25 20:55, By: UnclePhool, IP: [69.254.134.74]