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L1: re-calculateI started two sepp,s, one in 03 and one in 04. I will have completed 5 years in both plans and be 59.5 in late 09. My account balance like many is less now than when started. What are my options for decreasing my withdrawl amounts in 08 and 09 ? Thank- John2008-10-08 23:17, By: john, IP: []
L2: re-calculateJohn,FIrst of all, be totally sure how much of a reduction you can handle with your projected expenses for the next 12 months. If you make your one time switch to the RMD method, you do not want to risk busting the plan because the switch cut back your distribution too much and then you needed more.Note that you have two totally separate plans, so you have the flexibilityof making the switch to the RMD method for either or both of the accounts. You may still be able to make the change for 08 if you have not taken out too much already under the RMD calculation using the 12/31/07 balance. If you have already exceeded the RMD amount, you may be eligible to roll back your latest distribution if within 60 days and you still have a rollover available. If youhave already taken out toomuch for the RMDmethod calculation looking at both accounts separately, then you are limited to making the change in 2009. Arguably, there is no ruling that you cannot make a mid year change, but I would not recommend it since the RMD method is inherently a full calendar year calculation. I would forget about trying to do a mid year change. Too many moving parts and too much risk of busting the plan.For 2009, using amuch reduced year end 2008 value per market losses, your 72t distribution for 09 should be much less. Again, if it is too little, then make the switch on only one of the two 72t plans. Finally, even without a switch to the RMD method, you may have some options on how much each plan must distribute in 2009. Would have to know the exact month and year each plan started and the month you turn 59.5 next year.2008-10-09 15:29, By: alan+s., IP: []