SEPP calculator
L1: SEPP calculatorHi, I’m just starting to determine my SEPP payment and I received an entirely different annual amortized amount from “bankrate’s 72T distribution calculator” as compared to the calculator on your site here. I was also unsure of two inputs on your calculator that were not asked of me when I used the other site’s calculator: These were something like “estimated interest rate” and “IRS penalty rate”. The estimated interest rate was a different entry asked for besides the 120% mid-term rate. If you want to double-check for me, my birthdate is 7/21/64, my IRA value that will be used for my SEPP is $695,000, and my first distribution date would be 7/31/2017. This site’s calculator gave me $26,118 (I entered zero for the two estimated interest field and IRS penalty field), but the bankrate calculator gave me around $32,000. I used 2.45% for the 120% midterm rate. I used single life selection. I am confused. Thanks.2017-06-01 17:02, By: Newbie87, IP: [104.129.204.148]
L2: SEPP calculatorIf you click on the [Help] link on the top right, it will give a definition of both the investment rate and the IRS penalty rate.
If I enter your information using a single life option, I get an annual distribution amount of $32,431.75
Owner Born 7/1/1964 Plan Age 53Total IRA Accounts $695,000.00SEPP Plan Account $695,000.00SEPP Interest Rate 2.55%Investment Interest Rate 4.00%1st Distribution Date 7/31/2017Date Age 59.51/1/20245 Year Date 7/31/20221st Modification Date 1/2/2024
Distribution Factor
31.400
Initial SEPP Payment
$22,133.76
Amortization Method
Distribution Factor
21.430
SEPP Payment
$32,431.75
Annuity Method
Distribution Factor
21.518
SEPP Payment
$32,298.54
2017-06-01 17:40, By: Gfw, IP: [216.80.120.234]
L3: SEPP calculatorgfw -interest rate 2.45, not 2.55?2017-06-01 22:21, By: Alan S, IP: [174.126.90.174]
L4: SEPP calculatorAlan… Thanks for the catch – Changes it a little, but not much…
SEPP Plan Assumptions
Owner Born
7/1/1964
Plan Age
53
Total IRA Accounts
$695,000.00
SEPP Plan Account
$695,000.00
SEPP Interest Rate
2.45%
Investment Interest Rate
4.00%
1st Distribution Date
7/31/2017
Date Age 59.5
1/1/2024
5 Year Date
7/31/2022
1st Modification Date
1/2/2024
Minimum Distribution Method
Distribution Factor
31.400
Initial SEPP Payment
$22,133.76
Amortization Method
Distribution Factor
21.728
SEPP Payment
$31,985.76
Annuity Method
Distribution Factor
21.820
SEPP Payment
$31,851.51
2017-06-01 22:30, By: Gfw, IP: [216.80.120.234]