Methods #1&2, New MD Factors

L1: Methods #1&2, New MD Factors Please explain when one wouldselect “yes” when one who select “no” to the question “Methods #1&2, New MD Factors” in the 72t Calculator.Using the new rules, the ammortization method produces a higherdistribution, so I”m thinking about using this method, but not sure about this question.
Thanks, Roger2002-11-23 04:46, By: roger, IP: [127.0.0.1]

L2: Methods #1&2, New MD Factors If I get time later today, I”ll change the wording on the screen to something like “Use Annuity 2003 Table for Methods #1 & #2”.
If the plan is implemented and the first distribution occurs this year you could select NO
if the plan is implemented after 12/31/2002 then you would want to select YES
By implemented I”m really talking about adopting, funding and making the first distribution.2002-11-23 06:42, By: Gfw, IP: [127.0.0.1]

L2: Methods #1&2, New MD Factors Thanks for the quick response. I have another question: I plugged in $515,000 into Total IRA Balance and into the Amount allocated to plan and used 4% for the Reasonable interest rate and and Actual Interest Rate. I selected “yes” for Methods 1 &2 , Use Annunity 2003 Table, and answered “no” for the other “yes/no” questions.
For the 1st year results, the table showed $515K to start and $504K at the end with only $19,407 as the interest earned. Since the beginning and ending balance were both above $500K, I would expect the interest earned to be above $20K (4% x $500K)
Please explain why it is les than $20K.
Thanks, Roger2002-11-24 04:47, By: roger, IP: [127.0.0.1]

L2: Methods #1&2, New MD Factors You neglected to offer two vital pieces of information – your age and which method, but you should be able to do the math – it”s not very complex.
Assuming the payment is $27,000…
515,000 – 27,000 = 498,000488,000 x 0.04=19,520488,000 + 19,520 = 507,520BTW – please don”t start a new thread unless you have a totally new question, merely respond to the existing post – it”s much easier to follow.
2002-11-24 05:30, By: Gfw, IP: [127.0.0.1]

L2: Methods #1&2, New MD Factors I”m not sure why age and method matter here….please explain why these elements are critical to determine the interest. I understand your calculator now. Your calculator assumes an up front annual distribution, where asI assumed mydistributionwould bea monthly, so my end results would be some what higher. That is why I assumed at least $20K interest gain.
Thanks for your great web site and speedy replies.
Roger2002-11-24 15:44, By: roger, IP: [127.0.0.1]

L2: Methods #1&2, New MD Factors Age and method would have made it easier for me to figure out what payment you were using.
Yes, all of our calculations are done annually – monthly is merely annual divided by 12 – approved in several PLRs.
Good luck and have a great 2003 and beyond!
2002-11-24 17:01, By: Gfw, IP: [127.0.0.1]