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pauledst wrote,

You can use one of three methods for determining how much to withdraw but the most flexible one is an amortization based on your life expectancy, an assumed "reasonable" rate of return and the combined value of your qualified plans.
The rate of return is not specified and my discussion with an agent led me to use 8%. He said anything up to about 12% would probably not be questioned. In addition, nowhere in the regulation does it say you cannot change the % each year!
The withdrawal period is a minimum of 5 yrs or age 59 1/2, whichever occurs later. That makes it ideal for someone 54/55 yrs old!


Be careful in relying on what an IRS agent tells you. The IRS does not let you use a conversation you had with an IRS employee as a defense in an audit.

I'm not aware of any IRS private letter rulings that allow a taxpayer taking SEPP distributions to arbitrarily change the interest rate used in the calculation after the first year.

intercst
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