Which Balance to Use for 72t
L1: Which Balance to Use for 72tQuick question, I am starting a new 72t from a seperate IRA and had the account rolled over Jan of last year….It was $500k to start….Now $525k….
1. Whick of the two do I use??
2. What if the balance was lower now?? Say $475?
Thanks so much!!2008-07-27 18:30, By: JAG, IP: [18.104.22.168]
L2: Which Balance to Use for 72tSince you will likely be taking your first distribution in August, you must use an account balance no further back than 6 months. A month end statement for any month from February to July will suffice, but you also must use a date no earlier than any pre 72t distribution or contribution to the account. Having this flexibility enables you to select a date that produces a payout figure closer to your projected needs.
In other words, if you want to use 4/30, you cannot have taken a non 72t distribution since then. Your initial account balance in January, 2007 is totally immaterial.2008-07-27 21:33, By: Alan S., IP: [22.214.171.124]