Low 72t rates

L1: Low 72t ratesHey Gang,
The new 72t rates are much lower (and most likely headed lower still) which affects my “draw rate” I”ll be locked into….Any other ways to get more income from my IRAs w/o penalty?? Seems strange that it”s all when you start a 72t that dictates how it will be from that point forward…
Any help would be great….2008-01-17 09:49, By: JAG, IP: [71.1.244.180]

L2: Low 72t ratesIf you have not yet started your plan, and by the time you start them the rates have dropped and are heading lower, you probably cannot afford to wait until the interest rate cycle reverses. That could take several months. One thing you could do is be sure to take the full annual distribution in the first year rather than a pro rate distribution, but that is not going to help unless you start your plan later in the year.
You probably posted this because you don”t have other IRA accounts to draw from or other employer plans that could be rolled over to a non 72t IRA while your 72t runs, or even a home equity or other loan source. To get the max out of the plan be sure to use the full 120% rate. A risky bet would be to start a re calc plan hoping the market would recover in the next 12 months to give you a bump in account balance. That”s less risky now at a 16 month low than at most times, but still a risky option because no one really knows how bad this is going to get before a recovery sets in.A recalc plan also has added risk of being busted simply by execution error in each annual recalc.
So you are right, if the 72t is your only source of income, but can”t yield enough, your options are limited with respect to the plan itself.2008-01-17 15:21, By: Alan S., IP: [24.116.165.60]