withdrawl amounts

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L1: withdrawl amountsI am trying to set up a 72t systematic withdrawal from a 403b contract for a 51 year old client (who hasseparated from service) with a major insurance company, and they are suggesting that the calculated amount (annuity factor method) is but the upper limit on a “range” of possibilities; i.e. “you need to pick a number at, or below, the calculated amount”.I have always operated under the assumption that the number is the number; why else have 3 different acceptable methods, resulting in a ‘range’ of potential amounts? If the insurance company is correct (which I dispute), there would only need to be 1 calculation method, establishing a maximum withdrawal, allowing the account holder to “pick a number” below the maximum.I base my conclusions on another 72t I set up for a different client with an IRA, invested with a mutual fund family. We calculated how much income the client needed, did the 72t calculations, extrapolated the amount of his IRA would produce the desired 72t income target, then split his IRA accordingly into 2 IRAs, taking the 72t withdrawals from only 1 IRA.Thank you,[email protected] 14:52, By: Dick, IP: []
L2: withdrawl amountsYou are right – the number is the number – there really isn’t anything like a “range” – the annual distribution amount must be withing about 50 cents of the calculated annual amount. The amortization method will “always” produce the highest distribution based on the same set of assumptions.2010-07-24 15:29, By: Gfw, IP: []