Calculating a 72t

[chardrider]

Can anyone here give me the formula to calculate the most simple 72t method. I know there are many online calculators; however I would like to see the actual method.

 

[MichaelB]

I split this off into a new thread.

 

[Htown Harry]

The life expectancy tables are an Appendix to IRS Publication 590.

This link, although dated, describes the withdrawal options in enough detail for you to set up a spreadsheet to check calculator values.
72t Rule - 72t Distribution - 72t Rule for IRA and 401k

 

[Kaufmanrider]

Here is a link to the IRS website.

Retirement Plans FAQs regarding Substantially Equal Periodic Payments

And the current IRS life expectancy tables from the CFR.

http://www.ecfr.gov/cgi-bin/text-id...59d35be56a1&node=26:5.0.1.1.1.0.2.55&rgn=div8

 

[rbmrtn]

The IRS site has an FAQ with example

Retirement Plans FAQs regarding Substantially Equal Periodic Payments

the 72t.net site has lots of info all about 72t , you might find something there 72t on the Net | SEPP, 72t, and /72q Distributions

 

[chardrider]

Thanks, could you also show the formula. I can get amount using online calculators, but would like to see the math. Do you have to calculate the return over the life span first and then divide by years to live.

 

[Kaufmanrider]

Thanks, could you also show the formula. I can get amount using online calculators, but would like to see the math. Do you have to calculate the return over the life span first and then divide by years to live.

The links we provided to the IRS website show the calculations. I also included the IRS life expectancy tables.

Go to the link and click on item 7. It gives and example for all three methods,