interest rate

L1: interest ratewhat is the (highest interest rates) that i can use to calulate, to get the highestpayment possible?,,,i always make at least 30% a year in my 401k,,,so i would like to use a higher interest rate ( say 15%),, is this possible?2003-01-16 07:31, By: grendalin, IP: [127.0.0.1]
L2: interest rateThe actual return on your investment has no revalence to the rate that can be used to determine SEPP payments. Please refer to Revenue Ruling 2002-62 Section 2.02…
(c) Interest rates. The interest rate that may be used is any interest rate that is not more than 120 percent of the federal mid-term rate (determined in accordance with 1274(d) for either of the two months immediately preceding the month in which the distribution begins).
Sorry – The maximum rate for a SEPP plan established this month is 3.98% – anything above that rate and you”ll be paying the 10% penalty tax.

2003-01-16 07:38, By: Gfw, IP: [127.0.0.1]

L2: interest ratethank you for your answer,,,2003-01-16 07:45, By: grendalin, IP: [127.0.0.1]

L2: interest rateHello grendalin:
Gfw”s response is unfortunately correct in that the new ruling was intentionally drafted to cause greater interest rate restrictions than ever before; however, even pre-1/1/03, 15% would never have been approved.
However, there is a broader issue here. If you can consistently earn 30% per year; particularlyin the last 3 years, your assets will double approx. every 3 years and you should be considered a certified investing genius. Therefore, you should probably care less about a measly 10% surtax.
By the way, please teach me how to earn 30% per year.
TheBadger
wjstecker@wispertel.net

2003-01-16 07:55, By: TheBadger, IP: [127.0.0.1]