Lower Interest Rate Possible?

L1: Lower Interest Rate Possible?Great site. I already bought the book but I have a question.
The 401K I’m going to use for my SEPP has a balance at the end of last year that produces a withdrawal amount too low using the minimum calculation, and too much using the amortization or annuitization methods if I use 100% of the mid term rate. Am I stuck or can I use a rate lower than 100% of the mid term rate to get the withdrawals I desire? Something around 2.5% gives me the payments I need and the longterm survivability. I don’t want to do anything risky or controversial. Any ideas?
Thanks,
Brad2004-03-03 13:08, By: Brad, IP: [199.46.200.231]

L2: Lower Interest Rate Possible?Hello Brad:
Any rate, as long as it is equal to or less than 120% of MT/AFR for either of the two months preceeding the month of the 1st distribution is just fine.
In the book, see page 49 last paragraph, last sentence.
TheBadger
2004-03-03 13:18, By: TheBadger, IP: [38.116.134.130]

L2: Lower Interest Rate Possible?Thank you very much. I read that sentence (again) in your book right after I posted, but the second opinion/re-statement is really appreciated.2004-03-03 15:08, By: Brad, IP: [199.46.200.232]

L2: Lower Interest Rate Possible?If you are going to roll your 401k to an IRA prior to implementing the SEPP, you could split the IRA. That way, you can use the maximum interest rate with the smallest amount of funds to achieve the necessary payments. You would still have a back-up IRA you could access in an emergency (without busting the SEPP account)
2004-03-03 15:38, By: G-T, IP: [24.145.242.199]