recalculating Mid-term Fed rate
L1: recalculating Mid-term Fed rateExisting SEPP
DOB: 8/23/1972 – 44 yrs old
First distribution was on Jan 6th, 2014
For the last 3 years I have taken my IRA acct balance from Dec. 31st of the previous year and used January’s Mid-Term Fed rate to calculate my annual distribution rate. I then divide this number by 12 and pay myself monthly installments on the 6th of each month.
I was curious if I can change the month I calculate my 2017 annual distribution? This January has a Mid-Term Fed rate of 1.76%, while February has a rate of 2.36%. I would ratherpausepaying myself for afew monthsto get the higher %.
I believe this is allowed as long as I take a distribution in 2017 but I wanted to get other opinions…I also assume the Mid-Term Fed rate month I use wouldstill be calculated with my Dec. 31,2016 IRA balance.2017-01-01 07:43, By: cpw, IP: [18.104.22.168]
L2: recalculating Mid-term Fed rateIt really isn’t a matter of when you take the distribution (it could be January or it could be December), but what you defined as the recalculation date in the original plan which sounds like a January. If you do decide to make the change to February, just be prepared to justify the change if you have to.2017-01-01 07:58, By: Gfw, IP: [22.214.171.124]