taxes on 72t

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L1: taxes on 72t

29.6 Years
Life Expectancy

$16,891.89 [$1,407.66/mo]
1] Minimum Distribution Method

$37,010.94 [$3,084.24/mo]
2] Amortization Method

$36,384.81 [$3,032.07/mo]

3] Annuitization Method
I”m confused abou the reply that was given for the posting dated 09/03/07 to Retired.
Per the amortiztion method 37,010.94 would be theannual amount with out taxes.
So are you saying that I could increase that amount to cover taxes based on my tax bracket?
I will not have any additonal accounts to pay taxes.
Thanks for your reply?
2007-09-14 09:32, By: destiny1, IP: [167.127.24.69]

L2: taxes on 72tGood morning Destiny:
I assume that youused the total amount you have in your IRA for input into the calculator, and that you do not have any other source of funds. Therefore, per the calculations, you may withdraw $37,010.94 per year from your SEPP IRA. Taxes will be calculated on this amount. No, you do not have the latitude to increase the distribution above this amount so you can “net” $37,010.94 after taxes. If you take more than this amount you will bust the plan.
Jim2007-09-14 10:09, By: Jim, IP: [24.252.195.14]

L2: taxes on 72tYou misunderstood the prior posting and responses.
If someone says they “need”X dollars to supplement their income or for a special purpose, we are reminding them that they have to provide for the taxes on the SEPP 72-T distributions. If someone needs $ 40,000, that is the spendable amount, so they need to take out $ 50,000 and put away $ 10,000 for taxes on that distribution. If they have outside money to pay the taxes, they probably would not be starting a SEPP, yet. Too often taxpayers take out what they plan to need for the next 5 or more years, only to find out the first April 15 that they don”t have the money to pay the taxes. Then they have to get more money from the SEPP, bust the plan, and pay the 10% penalty as well.2007-09-14 10:26, By: dlzallestaxes, IP: [151.197.62.224]

L2: taxes on 72tThanks everyone for the reply.
I did feel as if I was not understanding the reply to the original posting.
It does not hurt to get a clear understanding.
Thanks Again

2007-09-14 10:47, By: destiny1, IP: [167.127.24.69]

L2: taxes on 72tDestiny:
Thanks for asking for clarification. Too many times when we make a response to a question we are guilty of assuming knowledge that isn”t there, which only further confuses the issue. Never, ever leave a question unasked. Sometimes one of us will read a scenario, give an answer, and then someone else will point out how the first person misinterpreted the original question and will give a better answer. If you don”t get a satisfactory answer the first time, ask again.
Jim2007-09-17 11:55, By: Jim, IP: [24.252.195.14]