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The smallest Minimum Distribution?

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ByConfused

L1: The smallest Minimum Distribution?The smallest Minimum Distribution?

I just found out about the 72T, a very well kept secret! I need some extra living money, age 56, retired at 54. I just rolled over a large IRA from one brokerage to 2 brokerages.

Money example: Rolled over 800K (K=1000) from firm A, to firm B and C, firm B has 400K and firm C has 400K. Using the calculator today (4/2007) about an 1161.44 monthly minimum payment is required on the one 400K account at firm B.

Question 1: Is that OK to use half of the total, but 100% of the total account? Did I break any rules?

Money example: If I did not want that much, just say half for example (1161/2 = 580 a month).
Question 2: Could I call firm B and say make me two accounts say (50/50 = 200K and 200K) and just use the one of the accounts (total of 200K) for my SEPP plan? Did I break any rules here?

Question 3: I have to do this for 5 years? 56 5 = 61?
Question 4: Can I start a normal 59.5 distribution of the other accounts at 59.5 or is there some other rule? Is there anything I am missing as far as general rules? Do this! But never do that!

Thanks
Confused, but trying to educate myself!2007-04-16 07:53, By: Confused, IP: [67.150.44.206]

L2: The smallest Minimum Distribution?I don”t think you are as “confused” as you think. In fact, I think you have a pretty good handle on good methods for managing your assets. Splitting up your IRA is good planning. In fact, we recommend this practice so you can have a dedicated account for SEPP and one or two other accounts outside of SEPP for emergencies. You can evenstart a second SEPP from one of the outside IRA”s if you need too before reaching age 59 1/2. Best practice is to figure out what monthly amount you need, then use the reverse calculator and the max interest rate allowable to determine how much you need in the SEPP IRA account, and adjust IRA balances to achieve what you need. When you turn 59 1/2 you can take whatever you wish from your non-SEPP accounts.
Jim2007-04-16 08:41, By: Jim, IP: [24.252.195.14]

L2: The smallest Minimum Distribution?Jim
Thank you for your help!
Not-So-Confused2007-04-16 11:52, By: Confused, IP: [67.150.37.38]

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