- Distribution interest rate
- This is also known as the reasonable rate of interest for 72(t) distribution. As per the IRS rules, the rate can’t go beyond 120% of the Federal Midterm rate for any of the preceding two months. An example should clear the concept. Suppose the distributions started in December of 2013. In this case, the distribution interest rate would be equal to or less than 120% of any of the preceding two months (November, 2013 or October, 2013) Federal Mid-term rate. Please, click here for detailed information.
- Projected earnings rate
- It’s your expected rate of return from the retirement savings account.
- Account balance
- Enter the account balance of the retirement account as it was on the closing date (31
^{st}December) of previous year. - Your age
- Mention your present age here.
- Beneficiary age
- Current age of the retirement account’s beneficiary. Ignore this field if your SEPP or Substantially Equal Periodic Payments are calculated using the Joint Life Expectancy table.
- Choose life expectancy table
- As per the IRS rule, the SEPP is calculated using different life expectancy tables. Choose the one applicable for you among the Single Life Expectancy, Uniform Life Expectancy, and Joint life expectancy tables.
- Choose distribution method
- This calculator uses three methods to calculate the amount of distribution that will allow you to withdraw funds without paying 10% premature distribution penalty until your age turn 59 years and 6 months. Choose the applicable one from the Required Minimum Distribution, Fixed Amortization Method, or Fixed Annuitization Method, and the appropriate adjustments will automatically be made by this calculator.
- Post 72(t) distribution
- Percentage amount that indicates the amount you want to receive annually after the 72(t) or 72(q) distribution takes place.