Minimum Distribution Method
L1: Minimum Distribution MethodI’m ready to ‘pull the trigger’ and begin the Minimum Distribution Method in July 2010. I’m 54 and with an end May balance in my IRA of $537,047.35 the calculated yearly / monthly distribution is $17,608.11 / $1,467.34. My question is that in the table provided the annual payment is increasing each year. It’s my understanding that once I begin withdrawing $1,467.34 each month that this amount will continue for the full 60 months. Can you help me to understand? Thank you very much.2010-06-23 18:20, By: Dennis, IP: [18.104.22.168]
L2: Minimum Distribution MethodThe minimum distribution method requires annual recalculation which means that the annual distribution may go up or it may go down.
I thisnk you should delay “pulling the trigger” until you learn SEPP rules or you get some professional help. Mistakes can be extremely costly!
Start by reading a few posts down… “MD Method”2010-06-23 18:28, By: Gfw, IP: [22.214.171.124]
L3: Minimum Distribution MethodThank you and I’ll take your advice to learn more first. Actually, all of my previous learning was around the Amortization Method – we needed more income – but things have changed. I’ll probably look to create another IRA so and use the Amortization Method. Thank you!2010-06-23 18:38, By: Dennis, IP: [126.96.36.199]
L4: Minimum Distribution MethodSounds better.
Review all of our SEPP Planning Pointers
Determining the amount you need annually to meet your needs.
Use the Reverse Calculator to determine the amount that you will need to allocate to teh SEPP plan using the maximum possible interest rate.
Divide the IRA into at least 2 parts: a) the SEPP IRA; and b) the balance.
Based on interest rates available in July or August, start in July or August if you feel comfortable with your decisions.
2010-06-23 18:47, By: Gfw, IP: [188.8.131.52]