A TCP connection is specified by the tuple (source IP, source port, destination IP, destination port).
The reason why there is a TIME_WAIT state following session shutdown is because there may still be live packets out in the network on their way to you (or from you which may solicit a response of some sort). If you were to re-create that same tuple and one of those packets showed up, it would be treated as a valid packet for your connection (and probably cause an error due to sequencing).
So the TIME_WAIT time is generally set to double the packets maximum age. This value is the maximum age your packets will be allowed to get to before the network discards them.
That guarantees that, before you’re allowed to create a connection with the same tuple, all the packets belonging to previous incarnations of that tuple will be dead.
That generally dictates the minimum value you should use. The maximum packet age is dictated by network properties, an example being that satellite lifetimes are higher than LAN lifetimes since the packets have much further to go.