On private finance schemes and finance leases transferring to the Coun cil's balance sheet under International Financial Reporting Standards the Council will adopt the annuity method
when calculating MRP on these schemes.
It further found that there was no indication in the legislative history of section 72(t) that Congress intended the election of the annuity method
to preclude the use of other exceptions to the penalty The court also concluded that the purpose of the penalty, to discourage early withdrawals from retirement savings accounts, is not defeated if a taxpayer withdraws money from an IRA under more than one exception.
For example, assume you are 54 years old and taking distributions under the annuity method
of $49,460 each year.
Distributees will henceforth be allowed to switch freely from the amortization or annuity method
to a schedule that satisfies Sec.
Taxpayers using a fixed annuity method
to avoid an early-withdrawal penalty may make a one-time switch to a variable amount method based on the account's value.
Observation: Even though the husband and wife resided in a community property state, divorcing couples in other states also can take advantage of the annuity method
in equalizing their marital assets.
More funds are available for retirement under the annuity method
of payment because of the additional years of tax-deferred compounded interest on the IRA's accumulated funds.