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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Re: OT: Traditional IRA and Taxes Date: 6/23/2000 9:32 PM
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86proof asks,

Obviously, I got so excited at the subject matter as I am presently making this decision myself that I hit the "post new" instead of "reply" icon. This refers to the post on 72t distributions for taking an early distribution prior to 59 1/2. The formula was: (1-(1/(1+r)*L/r where r= the assumed rate of interest and L= your life expectancy.
Sorry for the foul-up!


There have been numerous IRS private letter rulings allowing the use of 80% to 120% of the long-term applicable Federal rate published by the IRS. For July 2000, that rate is 6.40%.

That means you can go as low as, 6.40 x 0.80 = 5.12%

or as high as 6.40 x 1.20 = 7.68%

If you decide you need to use a number outside of this range, you should get your own IRS private letter ruling to make sure you don't run afowl of the IRS.

intercst
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