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Life expectancy and interest rates

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Byrich

L1: Life expectancy and interest ratesI am setting up a SEPP using the amortization method this month (Jan. 2006).I will be 52 this year. So would a life expectancy of 32.3 and a interest rate of 5.43 (Dec.2006 AFR) be within the guidelines of 72t.2006-01-09 11:16, By: rich, IP: [199.199.171.152]
L2: Life expectancy and interest ratesStart by checking out the 72(t) calculator and input your information including the starting balance. Press the calculate button and review the page for the results.2006-01-09 14:28, By: Gfw, IP: [172.16.1.73]

L2: Life expectancy and interest ratesRich,
Looks like you are not using a joint calculation if you get a 32.3 LE. That’s going to result in a higher required payment due to the shorter single LE (unless maybe your grand dad is your IRA beneficiary 🙂 )2006-01-09 14:59, By: Alan S., IP: [24.116.165.157]

L2: Life expectancy and interest ratesTo get a lower payment – if that is what is desired, try the reverse calculator based on the income desired and divide the IRA into 2 accounts before establishing the SEPP.Just my opinion, but I favor using single life expectancy and the max rate allowed to generate the required income the balance can then be used fro emergencies or unexpected events without busting the SEPP.2006-01-09 15:05, By: Gfw, IP: [172.16.1.73]

L2: Life expectancy and interest ratesRemember, when using a Non-spouse Beneficiary, the max age differential is 10 years, which puts you using the Uniform Lifetime table.
Jim2006-01-09 16:09, By: Jim, IP: [70.184.1.35]

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