72t
My question does a person using 72t have to take the amount that was calculated ie lets say all the calculations were $5,000 per month $7,500 per month $7,900 per month but the client only wanted a distribution of $4,000 per month. Does 72t force the client to take the higher calculated 72t numbers or can I take the smaller number instead? 😕
Permalink Submitted by Alan Spross on Thu, 2010-11-18 20:02
The client must distribute the exact amount (no more and no less) generated by the calculation method elected, ie MD, amortization or annuitization methods. But a one time switch from one of the fixed dollar methods to the MD method is allowed for those that want to reduce their annual payout.