How Can We Help?
< Back
You are here:
Print

Rul. 2002-62 Appendix B

Posted
Last Updated On
ByDRS

L1: Rul. 2002-62 Appendix BForgive me guys for being stupid. I am trying to figure out how to read the mortality table to use to calculate my SEPP under the annuitization method. Acording to the Vanguard worksheet I have I am suppose to take my IRA balance and divide it by the annuity factor derived from appendix B. Could someone tell me what are the Qx and Ix factorsand how they work in the equation ? I am 53yrs old and will be using an interest rate of 3.2 %. I have a IRAbalance of 300k. If you wouldn’t mind tell me what you come up with when looking at the table so I can better understand.
thanks for your help
DRS
2009-07-13 16:26, By: DRS, IP: [97.73.64.167]

L2: Rul. 2002-62 Appendix BWhat you are asking for is a short course on actuarial math.
Merely use the calculators on this website, or if you really want to calculate your own, use the amortization method (better anyway) and easier to understand.
A very short course can be found here… http://en.wikipedia.org/wiki/Actuarial_notation2009-07-13 16:46, By: Gfw, IP: [216.80.125.206]

L3: Rul. 2002-62 Appendix BDRS,
Remember that you may be 53 now, BUT, if you will turn 54 by 12/31/09, and you take yourfirst SEPP payment in 2009, then you have to use the age 54 in your initial calcs.
Also, the 3.2% rate you listed cannot be used for the “reasonable interest rate” on a SEPP plan unless theinital payment is in either AUG or SEPT 09, because the JUNE rate of 2.71% is the highest one that can be used in JULY. The JULY ’09 rate of 3.32%(or anything less than that, like your 3.2% rate) can be used for initial payments in either AUG or SEPT. If theAUG posted max exceeds the 3.32% July max rate, it can be used for plans with initial payment in SEPT or OCT. The calculators on this site are much more reliable than trying to write your own equation. I have a Vanguard SEPP plan, and I used this calculator to get the figure, and then proved it using the formula on the Vanguard form. KEN2009-07-13 20:48, By: Ken, IP: [71.192.120.143]

L4: Rul. 2002-62 Appendix BThanks to you both, you have been very helpfull.
DRS2009-07-14 12:48, By: DRS, IP: [97.73.64.163]

Table of Contents