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interest rate window

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ByJeff

L1: interest rate windowI will soon begin my 72(t) withdrawals and I would like to use the 6.13 rate from August 1, 2007 for my 72(t) calculation. As I understand it, I must take my first distribution between September 1 and October 30, 2007 in order to use 6.13. Am I correct in this? Thanks in advance.Jeff2007-08-22 07:27, By: Jeff, IP: [65.186.91.106]
L2: interest rate windowSounds about right. From out interest rate page…

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
2007-08-22 13:58, By: Gfw, IP: [24.148.16.150]

L2: interest rate windowJeff,
The August 07 rate you listed can be used for first payments issued between 9/1/07 and 10/31/07. I would not pick a date close to end of that two month period, in case first payment is delayed, since it would cause a problem for you (using that rate) if first payment was really received in early Nov. I have a second (monthly) 72(t) that I set up for in May 2007 for payments on the 5th of the month, and I have received the wire transfer as late as the 8th of the month into my bank account. If you shoot for a mid month payment, it also gives you a few weeks in December to react in case something goes wrong with last payment of the calendar year. In that case, if the total payout for the year is incorrect, (yoiu need to watch this yourself each year) you can get it fixed before the 12/31/yy date passes, so that thethe 1099-R total is computed with correct value for your planned 72(t). Good luck. KEN2007-08-22 14:05, By: Ken, IP: [75.67.65.254]

L2: interest rate windowThanks for the replies. Thanks also, Ken, for your points on withdrawal timing. I am thinking about doing my withdrawals manuallly on an as needed basis, rather than setting up automatic monthly payments. I will make sure that I have everything right for the year early in December.Regards. Jeff2007-08-23 04:48, By: Jeff, IP: [65.186.91.106]

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