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Minimum Distribution Method
I'm ready to 'pull the trigger' and begin the Minimum Distribution Method in July 2010.  I'm 54 and with an end May balance in my IRA of $537,047.35 the calculated yearly / monthly distribution is $17,608.11 / $1,467.34.  My question is that in the table provided the annual payment is increasing each year.  It's my understanding that once I begin withdrawing $1,467.34 each month that this amount will continue for the full 60 months.  Can you help me to understand?  Thank you very much.
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Last: 2010-06-23 18:20, By: Dennis, IP: [24.7.70.25]
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Minimum Distribution Method

The minimum distribution method requires annual recalculation which means that the annual distribution may go up or it may go down.

I thisnk you should delay "pulling the trigger" until you learn SEPP rules or you get some professional help. Mistakes can be extremely costly!

Start by reading a few posts down... "MD Method"

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Last: 2010-06-23 18:28, By: Gfw, IP: [24.148.10.164]
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Minimum Distribution Method
Thank you and I'll take your advice to learn more first.  Actually, all of my previous learning was around the Amortization Method - we needed more income - but things have changed.  I'll probably look to create another IRA so and use the Amortization Method.  Thank you!
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Last: 2010-06-23 18:38, By: Dennis, IP: [24.7.70.25]
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Minimum Distribution Method

Sounds better.

Start with...

  • Review all of our SEPP Planning Pointers
  • Determining the amount you need annually to meet your needs.
  • Use the Reverse Calculator to determine the amount that you will need to allocate to teh SEPP plan using the maximum possible interest rate.
  • Divide the IRA into at least 2 parts: a) the SEPP IRA; and b) the balance.
  • Based on interest rates available in July or August, start in July or August if you feel comfortable with your decisions.
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Last: 2010-06-23 18:47, By: Gfw, IP: [24.148.10.164]
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