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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 78663  
Subject: Re: Do I Need a Private Letter Ruling? Date: 1/28/2000 9:20 PM
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RBStanley asks,

I am planning to retire this year at age 52 and take substantially equal payments out of my IRA until I reach 59.5. I plan to use the amortization method of withdrawal from one designated IRA cash account and choose a reasonably conservative interest rate of 7% and my life expectancy per approved actuary tables. My IRA account balance will be based on the value in existence as of 12/31/99. I'm not doing anything unusual that I know of and will follow the IRS Notice 89-25 guidelines. As long as I carefully document my assumptions and withdrawal rate calculations, is there any reason I need to hire an attorney to obtain a private letter ruling from the IRS? If it's a good idea to get a private letter ruling, can I do it myself and if so whom do I contact?

I don't see any need for a Private Letter Ruling.

A 7% interest rate is well within the 120% of the long-term Applicable Federal rate that most "experts" feel is "safe". For January 2000, 120% of the long-term rate is 7.77%.

There's a free calculator on the Retire Early site that you can use to determine the exact amount of the penalty-free IRA withdrawal, see link:


You can also make the calculation using the PMT function on Excel.


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