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interest rate

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ByArt

L1: interest rateI know that 120% of the federal mid-term rate is the upper limit you can use for SEPP calculations. Is there a lower limit?
For example, suppose the taxpayer wants towithdraw payments of only 1/2 of the amount that would be determined using 120% of the federal mid-term rate. Does he have to split the IRA into two accounts first, or can he use amuch lower interest rate assumption?
Thanks.2005-10-26 08:35, By: Art, IP: [24.213.247.144]

L2: interest rateYou can do either. My personal choice would be to split the IRA into two segments – one for the SEPP and the balance in the other.
You can use the Reverse Payment Calculator to help determine the amount that you will need based on your desired annual payment. By dividing the IRA, you will retain some outside the SEPP plan giving you more flexibility in case of an emergency.2005-10-26 14:30, By: Gfw, IP: [172.16.1.71]

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