when calculating from annual to monthly withdrawal payments
L1: when calculating from annual to monthly withdrawal paymentsMy Amortized annual withdrawal amount to the penny is $26,032.27.
To make it a monthly withdrawal, I divide by 12, which comes to $2169.355833333. Do I assume the monthly withdrawal to be $2169.36?
Then the monthly withdrawals, whether it be the $2169.36 or $2169.35, add up to a new yearly withdrawal of $26032.32 (using the 36 cents) or $26032.20 (using the 35 cents).
The 2nd question is, does the IRS make issue with the difference from the original yearly calculation of barely 5 or 7 cents due to converting to a monthly calculation?
My IRS paranoia is kicking in, sorry, lol.
2017-08-30 12:45, By: jedischultz, IP: [220.127.116.11]
L2: when calculating from annual to monthly withdrawal paymentsI wouldn’t worry about a rounding difference of pennies that does not even amount to .50 on the 1099R, and the 1040 line 15a will be 26,032 for either monthly option or also if you took out a lump sum of the exact amount. I would definitely not go to the trouble of trying to modify one payment to get to the exact amount. That would actually add risk of a real error depending on the custodian.2017-08-30 17:17, By: Alan S, IP: [18.104.22.168]
L3: when calculating from annual to monthly withdrawal paymentsInterestingly, the IRS data entry has been in even dollars, and actually dropping the cents, not even rounding. This often confounds practitioners because we round up from $ .50 cents.2017-08-30 18:52, By: dlzallestaxes, IP: [22.214.171.124]