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I 'retired early' last year and I'm about to start taking SEPP payments from an IRA using the amortization method. The calculations are easy, but I have several questions about what rate to use.

Do I use the Federal rate in effect at the time of my account balance(12/31/99), the time I make the calculation and submit the forms(1/00), or the time I receive the 1st payment(2/00 or preferably 3/00)?

The Jan 2000 Federal table 1 includes a 120% rate of 7.77, while 1.2 times 100% rate(6.45) equals 7.74(also used by the Retire Early Java calculator). Which can I safely use(and why the difference)?

Vanguard's instructions say I can take quarterly withdrawals. If I choose that option, do I have to calculate the amount using a different rate(the table shows semi-annual, quarterly, and monthly rates) and life expectancy, or am I OK as long as I take 4 payments this year equaling the yearly calculation?

Thanx :)
No. of Recommendations: 0
Since the dates are so close, it will nto matter which AFR you use. Were the timing to be more distant, then I would suggest you use the rate right before your fist distribution.

I to don't know why the difference between 7.77% & 7.74%. Again, I don't think it matters.

Lastly, you get to make your own calculations using whatever frequency you like but always (in)directly winding up with an annual withdrawal amount. Then, you determine how to satisfy that annual amount through 1 to 100 withdrawals.