72(t)
client dob 07/22/1961
amount of IRA transferring to me 4,407,000
set up eight “72(t)” accounts of 480,000 and one non 72t of 567,000
regarding the 8 accounts – amortization method, single life expectancy
Fed applicable interest @120%=4.97%
withdraws 28,369 per each of 8 accounts each year for next 14 years
Questions:
1. Account Balance Valuation – Are we forced to use balance of IRA at 12/31/2006 or can we use the 480,000 that we start with in each of eight 72 (t) accounts??
2. Annual periodic withdrawal – Client’s first withdrawal will be this month(before year-end) at the 226,952 amount. Can his 2008 withdrawal be any month next year or must it always be each December??
Permalink Submitted by Al Fry on Tue, 2007-12-11 02:37
Rev. Rul. 2002-62 says one can use any date amount for the first payment, if “reasonable”, so that is subjective. It is my understanding annual payment can be taken out anytime. There are a couple of 72(t) experts that monitor this forum, so one may add to the string. You can also try the forum at 72t.net.