Starting of 72t

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L1: Starting of 72tI am 55 yrs old. I want to start my 72t in May. I have been told I need to take a full distribution in 2005. I find this somewhat confusing. If I have to take a full years distribution what interest rate would I use? The interest rate for December or April. Am I right in assuming if I have to take afull years distribution it would be done in Dec 2009. Thankyou for your help.2005-02-23 13:55, By: Nancy050, IP: [204.26.95.171]
L2: Starting of 72tIn the first year, you could take the full annual amount or a pro-rata distribution based on the number of months. Start by browsing the site and reading some of the information that is available. For example.. on the interest rate page is states The interest rate that may be used is any interest rate that is not more than 120 percent of the federal mid-term rate for either of the two months immediately preceding the month in which the distribution begins.۝
You will also find a Last Payment Date۝ calculator when it ends will depend on when it begins.
Do a little reading consider Bill’s book know what you are getting into before you start and you will have many less problems after the plan begins. If you don’t want to bother, or don’t feel comfortable making the decisions, then hire a professional to do the work. 2005-02-23 14:02, By: Gfw, IP: [172.16.1.75]