There are three approved methods for penalty - free
pre 59 and 1/2 IRA distributions, minimum distribution, amortization and
annuity. This revenue ruling, 2002-62, provides information on how these
computations are to be made.
Those that started with the amortization or annuity
method during the stock market bubble and invested heavily in the stock
market through the IRAs, are going to deplete the IRA funds quickly if the
amortization or annuity methods were originally used.
Revenue Ruling 2002-62 provides for a one - time
switch from the amortization or annuity methods to the minimum
distribution method. The result of this switch will provide for the IRA
balance to last longer.
For a copy of Revenue Ruling 2002-62, see our IRA/Pension
Distribution Planner home page.