January 120% AFR
L1: January 120% AFRJanuary, 2011… 120% Mid-Term = 2.34%, Applicable Federal Rates for 72(t) and 72(q) distributions. ClickHERE2010-12-24 18:00, By: Gfw, IP: [18.104.22.168]
L2: January 120% AFRNow that the downtrend in rates has been broken, we will probably see that February, 2011 will be short on days, but long on new 72t plans.
Remember, if you wait until Feb, you can use the higher rate, but can still opt to take out your full annual amount in 2011. A considerable benefit if you can just wait a month to get that first payment.2010-12-24 23:41, By: Alan S., IP: [22.214.171.124]
L3: January 120% AFRFolks,
I am waiting till February. T Rowe let’s you take quarterly distributions, so in theory I could wait till March if the rate jumps even higher.(But my intuition tells me it will not.)
My funds are all in cash at the moment.I sold all my equity funds in early November in anticipation of starting a SEPP, once I was up 9% for the year. (looked smart in November, looked dumb in December!)
I would like to put HALF the funds back into various equity funds on Jan 1. (Half because many are calling for a correction in January of 2011. Half gives you coverage if there is none, but cash to buy in if things do drop a lot.
My question is, will the IRS let me use my January 1 account balance for a plan that starts on February 5, even if the balance drops some between Jan 1 and Feb 5?.
2010-12-27 17:51, By: Tom R, IP: [126.96.36.199]
L4: January 120% AFRTom R,
See the recent “johnnyg” posting and replies for the answer to your question. 12/31/2010 or 1/1/2011 are both fine. KEN2010-12-27 17:56, By: Ken, IP: [188.8.131.52]