In other words, you can pick and choose which accounts to add together for purposes of selecting which of the three permitted distribution methods to use: amortization method, annuitization method, or life expectancy fractional method using either the Uniform Lifetime Table or the Single Life Table.
Keep in mind that the SEPP using either the amortization method or the annuitization method is a level amount that must be paid for at least five years or until age 5972, whichever comes later.
Three safe-harbor methods are available for calculating the annual withdrawal amount: (1) the required minimum distribution method, (2) the fixed amortization method, and (3)the fixed annuitization method.
The three methods approved by the IRS include (1) the required minimum distribution method, (2) the fixed amortization method, and (3) the fixed annuitization method.
Fixed Annuitization Method The fixed annuitization method also results in a level annual payment throughout the series.
The annuitization method is affected only by the interest rate because it is restricted to a specific life expectancy table.
The fixed annuitization method does not provide a choice among tables.
If the fixed amortization method or the fixed annuitization method is used, the IRA owner must select an interest rate.
Because the annuitization method requires the use of the mortality table in Rev.
Using the life expectancy method would provide $378 per month (not enough), while using the annuitization method
would provide $1,125 per month (too much).