Reverse 72(t) Payment Calculator

The purpose of this calculator is to help determine the amount that would be required to generate a specific annual payment. The final calculations will give you the total value using each of the three methods that would have be designated as SEPP assets. Remember,a portion of one or more of the IRAs may not be excluded in order to limit the periodic payment to a predetermined amount. PLR 9705033

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Owner's Age: Enter the attained age of the account owner on December 31st of the year that distributions will begin.

Beneficiary's Age: Enter your attained age of the account beneficiary in the year that distributions will begin.

Desired Annual Payment: Enter the annual payment that you are looking to fund.

Reasonable Interest Rate: Enter an interest rate that will be reasonable when the first payment is made for methods number two and three.

Post 12/31/2002 - For any SEPP plan funded with tax qualified money like an IRA, the interest rate that may be used is any interest rate that is not more than 120 percent of the federal mid-term rate for either of the two months immediately preceding the month in which the distribution begins.

Use Joint Calculations: Enter either YES or NO to use joint life expectancy calculations

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