Maximizing 72T payments
Potential client (50 years old) will be receiving an IRA as a result of a QDRO. Her current insurance rep is suggesting that she could establish a 33K annual income stream from the IRA (valued at 535K) through a 72T election. I’ve checked the numbers on 72T calculators from several websites and they indicate that the maximum annual distributions would be around $26,662. When I asked for the source of his numbers, he only indicated they were provided by his company’s website. Am I missing something?
Thanks for your anticipated help!
chazz56
Permalink Submitted by Alan Spross on Mon, 2010-04-26 20:03
Don’t think you are missing anything. Even if she were to reach 51 before year end, that only adds about $400 per year. Waiting until June to use the slightly higher May interest rate would only result in a very small additional amount. Therefore, I think that Company needs to recheck their calculations.