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Which months rate can I use?

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ByChris

L1: Which months rate can I use?I am starting a 72t distribution for a client. The paperwork requesting the distribution will be dated 3/30/04. The first distribution won’t come out until April 2004. Can I use the higher 4.01% March rate or must I use the 3.80% April rate?
Thank you for your help.
Sincerely,
Chris2004-03-30 10:08, By: Chris, IP: [65.42.195.110]

L2: Which months rate can I use?The interest rate that may be used is any interest rate that is not more than 120 percent of the federal mid-term rate for either of the two months immediately preceding the month in which the distribution begins 2004-03-30 10:16, By: Gfw, IP: [172.16.1.74]

L2: Which months rate can I use?Hello Chris:
RR 2002-62 says that the maximum rate is 120% of the MT/AFR for “either of the two months immediately preceding the month in which the distribution begins.”
Looks like your distributions will begin in 4/04; therefore use the interest rates from 2/04 & 3/04 which are 4.13% and 4.01% respectively. Therefore, for maximum effect, I would use 4.13%.
TheBadger
wjstecker@wispertel.net
2004-03-30 10:20, By: TheBadger, IP: [38.116.134.130]

L2: Which months rate can I use?Thank you for your help Badger. Are you certain I can go as far back as the Feb 4.13% rate?
2004-03-30 10:37, By: Chris, IP: [65.42.195.110]

L2: Which months rate can I use?Hello Chris:
Re-read Gordon’s & my replies. Yes, we are certain.
TheBadger
2004-03-30 11:00, By: TheBadger, IP: [38.116.134.130]

L2: Which months rate can I use?Chris:
You just got about a thousand dollars worth of free and correct advise from two highly qualified experts in the 72(t) / SEPP field. Here’s some additional free advise from an practicing financial planner … go to 72t.net home page and buy Bill Stecker’s book about a practical guide to this subject. It will be the best $40, tax deductible money you have ever spent.
Jim2004-03-30 11:48, By: Jim, IP: [68.1.147.61]

L2: Which months rate can I use?Gee Jim. I usually only charge $100, not $1000 for that answer. Thanks for the book plug. Call me anytime.
TheBadger
wjstecker@wispertel.net
2004-03-30 11:53, By: TheBadger, IP: [38.116.134.130]

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