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This is for Pixy or anyone else with experience in early withdrawals from rollover IRAs.

I am looking for suggestions for interest rate assumption for "Amortization Method" for Significantly Equal Periodic Payments (SEPP) in order to avoid the 10% penalty for early withdrawal.

If you don't have suggestion for rates, what method do you suggest to calculate a rate? I am also looking for rational to support the suggestion.

Thanks

TTFN...TiggerToo
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TiggerToo,

<<I am looking for suggestions for interest rate assumption for "Amortization Method" for Significantly Equal Periodic Payments (SEPP) in order to avoid the 10% penalty for early withdrawal.

If you don't have suggestion for rates, what method do you suggest to calculate a rate? I am also looking for rational to support the suggestion.>>

You're fairly safe in using a rate that's between 80% and 120% of the federal mid-term bond rate.

I discussed the methods for use of Section 72t calculations awhile back. Here's a link:

http://boards.fool.com/Registered/Message.asp?id=1040013000805003&sort=postdate

If you haven't read that missive, you should. This is one area where you want to proceed cautiously.

Regards....Pixy
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>>>I discussed the methods for use of Section 72t calculations awhile back.
Here's a link:<<<

Thanks for the reply. I read that thread, but it must have gone over my head.

I need to beg your indulgence once more, where can I find the Fed Mid-term rate. Is it published regularly in the WSJ?

Thanks again,

TiggerToo
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TiggerToo,

<<I need to beg your indulgence once more, where can I find the Fed Mid-term rate. Is it published regularly in the WSJ?>>

I believe it is on Thursdays. If not, your local library should be able to help.

Regards...Pixy
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