Max interest rate

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L1: Max interest rate: can I use less?The rules as I’ve read them from 2002-62 that I the interest rate that I use cannot be more than 120% of the federal mid-tram rate (I assume the annual one) for the two months preceeding the distribution.
Can I use a lower rate and how low can I go?2003-05-12 09:16, By: woolybully, IP: [127.0.0.1]

L2: Max interest rate: can I use less?Yes, any rate lower will work. How low can you go? Good question – strick reading of 2002-62 says ” any interest rate” – can you use zero? maybe.2003-05-12 09:28, By: Gfw, IP: [127.0.0.1]

L2: Max interest rate: can I use less?Did some thinking on this.
For the Amortization method, with”i” the interest rate and”e” the life expectancy, the formula
i / (1 – (1 i) ^ -e)
approaches 1 / e as i approaches zero. So with a zero interest rate, we wind up with the value computed with the Life Expectancy method. It would seem reasonable then that we could choose any amount between the ones computed with the LE method and the Amort. method. I’ll ignore the Annuity method since it computes intermediate values anyway.
One kicker is that the LE method requires yearly recomputation, but the Amort. method forbids recalculation. I would take the more consersative approach and not recompute.
Better yet, if I want a smaller distribution, then split the IRA into two. Since I only need the SEPP for about 6 years, and my LE is 31, the SEPP IRA is unlikely to bust. 2003-05-22 07:15, By: woolybully, IP: [127.0.0.1]