Reverse 72t Calc
L1: Reverse 72t CalcHow come the reverse 72t calc limits the amount in the IRA? I have roughly $1.3M in my IRA and I want to know what the max I can take is for 72t and which is the best method. I am 50 years old and I expect to start the 72t in 2 years. Does the IRS limit that amount?2014-12-30 22:48, By: hockee9, IP: [126.96.36.199]
L2: Reverse 72t CalcYou may want to read the help files on that page and the calculator page. The reverse calculator – as the name implies – is to calculate the amount needed to fund a specific payment. The regular calculator calculates the payment where the initial balance is known.
You may want to start by spending some time reading the FAQ section and “Planning Pointers”. Fortunately, you have some time to learn and then plan.2014-12-30 23:22, By: Gfw, IP: [188.8.131.52]
L3: Reverse 72t CalcAs gfw suggested, you obviously do not understand the purpose of the “reverse calculator”.
A SEPP 72-T is a very restrictive program that locks you in very tightly until the later of 60 months from the first distribution, or age 59 1/2, which in your case will be 7+ years once you start at age 52 two years from now.
Those of us who have been around for a longer time understand that life isn’t perfect and “things happen”, like illness, disability, divorce, unemployment, the economy, disaster, and even issues concerning older parents, adult children, and grandchildren.
The purpose of the “reverse calculator” is to determine the minimum that you can put into your first SEPP 72-T, and then to set aside the balance for sometime in the future when you might need to start a 2nd (or even 3rd) SEPP 72-T. Further it would provide an emergency fund from which you could take a lump sum without “busting” the plan prematurely, which would result in a 10% penalty retroactively on all of the cumulative distributions that you had taken since inception of the plan.
This way you get increased flexibility in case your perfect plan goes awry.2014-12-31 00:42, By: dlzallestaxes, IP: [184.108.40.206]