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Is Fidelity 72t Calculator Accurate?

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Last Updated On
ByGus

L1: Is Fidelity 72t Calculator Accurate?Hi all,
The output of the Fidelity 72t calculator differs slightly from the one on this website; however, the inputs to each are also different.
My primary inputs to the calculator on this website were: age 54, 720K, and reasonable interest rate of 3.99%. The output was:

$41,229.62 [$3,435.80/mo]
2] Amortization Method
My primary inputs on the Fidelity calculator were:

Month/Year of Birth

August 1949

Account Balance

$720,000.00

Distribution Start Date

January 2004

Frequency of Payments

Monthly

Interest Rate

3.99%
The output was: Amortization Method :$3,457.35
My questionis:My application for a SEPP with Fidelity will be based on their caculations above. If I allow them to figure my monthly payments (based on their requested inputs) will I be OK with the IRS?
Here is a link to the Fidelity calculator: http://web.fidelity.com/seqp/FiPre59Land.jhtml
Any help in understanding why the two calculators are different (and if only 1 or both are acceptable) would be gratly appreciated.
Thanks,
gus2003-11-21 07:19, By: gus, IP: [127.0.0.1]

L2: Is Fidelity 72t Calculator Accurate?Hello Gus:
For staters, you got the correct information from this website; e.g. $41,229.62;however, you input the data incorrectly. For commencement in 2004 you are considered to be 55, not 54. You use your highest attained age for the year even though you may not have attained that age when the first distribution occurs. Therefore, the right number becomes $41,882.83 or $3490.24 per month. The Fidelity calculator took you at your word and performed a monthly calculation as opposed to an annual calculation and then dividing the annual number by 12. The IRS does not really care about these differences and does not look at intra-year distribution frequency.
TheBadger
wjstecker@wispertel.net

2003-11-21 08:32, By: TheBadger, IP: [127.0.0.1]

L2: Is Fidelity 72t Calculator Accurate?Hi TheBadger,
Thank you forexplaining myinput error(s).
Now both calcs do match!
Best regards,
gus2003-11-21 11:38, By: gus, IP: [127.0.0.1]

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