72t -Series of Equal Periodic Payments — Able to withdraw less than what is calculated?
I am currently calculating a 72(t) payment (Series of Equal Periodic Payments) using the 3 allowed methods.
Am I allowed to withdraw less than what is calculated?
For example, the Annuitization and Amortization methods each allow me to withdraw about $25,000 each year.
Am I allowed to withdraw less that what is calculated…. for example, $22,000 year, or does it have to be for the exact amount as calculated?
Permalink Submitted by Alan - IRA critic on Sun, 2020-11-01 18:45
Exact amount as calculated using the method you elected. Fixed amortization yields the highest distribution per dollar of account value. In the initial year of the plan you have the option of withdrawing the full annual calculation or a pro rated amount by the month. For example, if your first distribution is in November, you can take out the full annual or 2/12 of the annual. After the first year, you also have the option to make a one time switch to the RMD method, which is likely to reduce your distribution going forward.