72(t) rule change

[HenryD]

I just saw this. If the article is correct it will provide me with a lot more flexibility when I set up our 72(t).

https://www.cnbc.com/2022/03/03/new-irs-rule-offers-higher-penalty-free-withdrawals-for-early-retirees.html

From the referenced guidance: "(c) Interest rates. The interest rate that may be used to apply the fixed amortization method or the fixed annuitization method is any interest rate that is not more than the greater of (i) 5% or (ii) 120% of the federal mid-term rate (determined in accordance with section 1274(d) for either of the two months immediately preceding the month in which the distribution begins). "

So it looks like they have set a floor of 5%, which is a big jump from what I had been estimating.

 

[nobody]

I saw the same type of article a few weeks ago, I was thinking the same thing. Glad I have been holding off on setting mine up, have been waiting for the AFR to increase.

 

[SecondCor521]

So it looks like they have set a floor of 5%, which is a big jump from what I had been estimating.

It's not a floor, but it is a higher ceiling, and it definitely is helpful for people considering a 72(t).