Latest to lock 120% MT Rate?

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L1: Latest to lock 120% MT Rate? I see a new Oct. 2008 120% Mid Term Rate rate = 3.81% posted today. This compares to Sept. ”08 = 4.16% and Aug. ”08 = 4.26%.

I have been contemplating establishing a 72t SEPP to fund
an existing life ins. policy I do not want to lapse. A change in family
income plus recent short-term interest rates dropping like a rock might
be the incentive I need to actually pull the trigger, something I have
been very reluctant to do until this time.

is the last day to ”lock in” the Aug ”08 4.26% rate?

Also, are there
any restrictions or negative ramifications to establishing a 72t SEPP
in the same tax year that an IRA owner has already effected one
rollover. In this instance, the ”rollover” was used as a short-term
bridge loan and replaced in it”s entirety within the required 60 days
(no taxes were withheld by the custodian).

Terrific resource here, thanks for your help.2008-09-17 10:55, By: Will, IP: []

L2: Latest to lock 120% MT Rate?To answer your first question, the first payment of your SEPP would have to be made to you between 9-1-08 and10-31-08 in order to use the August 2008 rate. You can use either of the rates (or a lesser rate amount than that) from one of the two months that precede the month of first payment. I cannot comment on your other question. Ken2008-09-18 02:42, By: Ken, IP: []

L2: Latest to lock 120% MT Rate?With respect to the rollover question, the answer is that the rollover has eliminated a potential safety valve to correct your distribution amount for this year if an error is made. The one rollover permitted over a 12 month period has been used and cannot be used again until later next year. This might come into play when you double check in December to make sure you have distributed the right amount for 2008 and find that perhaps an error was made by either you or the IRA custodian resulting in too much taken out. Having used your rollover you would not be able to roll the excess amount back within 60 days to correct your total annual 2008 SEPP distribution. Therefore, you must be extra careful in setting this up with the custodian to make sure that they do make an extra distribution or some other error. You might even want to fully control this yourself rather than setting up an automatic monthly plan that the custodian could mess up. Let that wait for next year.The only other issue is very minor. You will have to report a rollover on line 15 of Form 1040, the same line on which you will report the SEPP distributions. As long as the amount of your SEPP distributions is correct, you will not be deemed to have rolled over a SEPP distribution, which is not permitted.2008-09-18 12:55, By: Alan S., IP: []