L1: New seppStarting a new sepp, Date of Birth 9/25/1960. 340,000. First Distribution 9/25/2012.
I want to be able to “show my work”, but I’m having trouble reproducing what comes out of the calculator. It shows a distribution factor of 35.1 for uniform life, or 32.284 for joint life (wife dob 7/9/1963). I guess I’m asking where these numbers come from?Also when I plug thenumbers into Excel (=pmt), I don’t come up with the same dollar amount for distribution as the calculator.
Thanks2012-09-21 14:29, By: tbb, IP: [22.214.171.124]
L2: New seppOkay. I’m over my confusion about the distribution factor. And I can reproducethe calculator’s numbers in Excel. My newest question is why the calculator doesn’tuse of the Single Life Table. Everything I’ve read on the site and in the book says that I have 3 choices, andSingleLifegives the highest distribution.2012-09-21 15:33, By: tbb, IP: [126.96.36.199]
L3: New seppPretty sure this calculator DEFAULTS to the Single Life Table unless you select one of the other options.2012-09-21 15:49, By: meb24, IP: [188.8.131.52]
L3: New sepp1. Some people need the most distribution possible from there plan.
2. Some people will be able to segregate their IRA into 2 separate accounts by maximizing the distribution from one of them, and leaving the excess for future emergencies.
For example, you could use $ 400,000 for your SEPP, and leave $ 100,000 in another account for starting another SEPP, if needed, in the future, or to take some other distributions, with the 10% penalty just on that distribution, whenever they might be needed at various times. This way you can minimize the chance of having to bust your plan at some time before the 5-year/59 1/2 terminations, which would result in the 10% penalty on your total cumulative distributions from the start of your SEPP plan.2012-09-21 15:49, By: dlzallestaxes, IP: [184.108.40.206]
L4: New seppTBB- This is from the “Planning pointers” page on the website, with regard to single life table part of your question:
When using the calculators start with Single Life table and the maximum interest rate allowed. If the single life calculations (Use Joint Calculations=No) produce a higher than desired payment, consider breaking the IRA into multiple accounts using only one of the accounts to produce the desired SEPP payment. Other accounts can be used for emergencies or for establishing another SEPP at a later date.2012-09-21 15:54, By: Ken, IP: [220.127.116.11]
L5: New seppAhhh! Now I see. I thought that I had to select one of the checkboxes to make the calculator work. I didn’t even try it without selecting any checkbox. I read the Planning Pointers (more than once), but didn’t see anything that correlated (to me) with “Use Joint Calculations = No”
Thanks all!2012-09-21 17:00, By: tbb, IP: [18.104.22.168]
L2: New seppThis is what I came up with:
Total IRA Accounts$340,000SEPP
Investment Interest Rate4.00%
1st Distribution Date9/25/2012
Date Age 59.5 3/25/2020
5 Year Date9/25/2017
1st Modification Date3/26/2020
Amortization MethodDistribution Factor27.061SEPP Payment$12,564.01
2012-09-21 17:47, By: Scott, IP: [22.214.171.124]
L3: New seppWithout verifying your figures :
1. If $ 10,000 a year is adequate INITIALLY, then you could use only about $272,000 for your SEPP, and move $ 68,000 into a separate IRA account for future emergencies, or starting another SEPP later.
2. And, you could take either a full $ 10,000 in 2012 (using any unneeded excess as a safety net for future years, or take only the prorated $ 3,333.33 ( $ 10,000 x 4/12) in 2012).
3. Or you could take the full $ 12,564.01 (or prorated $ 3,769.20 ) if you didn’t want/need any safety net.2012-09-21 18:00, By: dlzallestaxes, IP: [126.96.36.199]
L4: New seppAgree, but the pro rated amount for 12,564 if the first distribution was in Sept. would be $4,188.2012-09-21 23:33, By: Alan S, IP: [188.8.131.52]
L5: New seppThanks for the correction. I don’t know what happened to my calculator.2012-09-22 01:25, By: dlzallestaxes, IP: [184.108.40.206]