I have some questions that I'm hoping somebody on the board has an answer for. If I retire prior to age 59.5 I can "annuatize" my IRA and take penalty free (but taxable) distributions for a minimum of 5 years or until I turn 59.5, whichever comes last. According to my Lassar's book, there are three methods of determining the amount I can withdraw. All three methods depend on either my life expectency, or my wife's and mine joint expenency. The difference between the three, however, is the interest that you can take credit for in figuring out how to annuatize the income. The first method is a straight line assuming no interest is accrued. The second two methods involve an assumed interest rate, but here is were my Lassar's and the IRS booklet on the subject are vague. My questions are:

1) What interest rate(s) can be used to make these calculations?
2) Is the ammount that must be withdrawn refigured each year based on some new interest rate and principal value?
3) Can I invest the money any way I want to providing it's under an IRA umbrella?
4) I have heard that some people split their IRA into several accounts to make it easier to adjust the amount of income they receive. Is this a reasonable thing to do?
5) Can the method for figuring withdrawals be changed each year?
6) Can the amount be figured on my life expectancy or is there a requirement that it be based on our joint expectancy?

The guides tend to make these questions like something only a qualified financial adviser can figure out, but given the ground rules anybody ought to be able to whip these figures into a spreadsheet and come up with the right numbers.

Thanks, Bernie