question about calculator input fields
L1: question about calculator input fieldsHello, and thanks for all of the valuable info on the site. My question is about the 72T sepp calculator. How do I figure the actual investment rate % to put in there? And The IRS penalty rate? Or can I leave those at the default that is already there? Thanks and I appreciate your help. 2009-08-31 01:20, By: Robert V, IP: [18.104.22.168]
L2: question about calculator input fieldsIf you look at the detailed spreadsheet that is generated, below the fill in sections, the actual interest rate is what computes how much your account may grow each year from your investments. It is a number you must assume from what you expect your performance to average each year over the future, but if you leave it -0- it just shows no gains from your investments. All of this is used to project your year ending balances each year going forward, but they are really just estimates, as we all learned when the market tanked over the past 2 years. The IRS interest rate is added to the 10% early withdrawal penalty that is computed in the cumulative “cost to bust” column. It showed 4% when I brought up the calculator, but I don’t know if that is correct. Again, just being used for estimating. The critical ones are “Reasonable Interest rate” (read up on how that is filled out, depending on what month your plan will start) and the age you will attain in the first calendar year you start your SEPP plan, along with entering the correct starting balance that you have in your IRA that is used for the SEPP plan. KEN2009-08-31 03:25, By: Ken, IP: [22.214.171.124]
L3: question about calculator input fieldsThanks Ken, that 4% penalty interest rate being brought up in the calculator, I wonderwhere to lookto find data on what to input there. I am like you, I do not know if it is correct, either. But then again, it is not a critical field, but if I ever had to turn in my worksheet to the IRS, I wonder if I should get it as close as possible. 2009-08-31 19:41, By: Robert V, IP: [126.96.36.199]
L4: question about calculator input fieldsThe actual rate is published (and possibley changed) on a quarterly basis.
The rate in the calculator is merely an assumption for the purposes of an illustration – if you adopt a SEPP and bust a SEPP the IRS will tell you how much you owe.
2009-08-31 19:52, By: gfw, IP: [188.8.131.52]