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Using Quarterly vs Annual Published Rates

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ByMike

L1: Using Quarterly vs Annual Published RatesWhen the AFR rates for February 2010 are published a “Period For Compounding” table breaks down the Mid-Term 120% AFR rates down to annual, semiannual, quarterly, and monthly rates. Could you verify for me please that if I wish to begin quarterly 72t distributions March 15, 2010 that I should use the quarterly 3.35% rate and not the 3.39% annual rate in the calculations? Also, are there potential issues I may not be aware of using the 15th of the month for the distributions? I see on other posts that using the 1st of a month could be problematic on holidays etc. Many thanks for the your site and all the info you provide – the premier site for 72t info. Mike.2010-01-20 19:36, By: Mike, IP: [68.35.13.127]
L2: Using Quarterly vs Annual Published RatesYou may want quarterly this year,monthly nextyear and annual the year after.Don’t make it complicated – use annual rate and calculate the annual amount.If you want to take quarterly distributions, divide the annual amount by 4.2010-01-20 19:45, By: Gfw, IP: [216.80.125.206]

L3: Using Quarterly vs Annual Published RatesIf you are setting up automatic distributions, the best date to use is between the 5th and 15th. This avoids month end displacements and gives you plenty of time in December to do a thorough last minute re check that you in fact have distributed the correct amount for the year, and to make a last minute adjustment if need be.2010-01-20 23:34, By: Alan S., IP: [24.116.165.60]

L4: Using Quarterly vs Annual Published RatesSounds good. Thank you very much.2010-01-21 18:11, By: Mike, IP: [68.35.13.127]

L3: Using Quarterly vs Annual Published RatesThank you very much.2010-01-21 18:13, By: Mike, IP: [68.35.13.127]

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