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Two IRAS, two brokers

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ByKentD

L1: Two IRAS, two brokers: can I setup two SEPP plans?First, thanks to this forum I believe I understand how 72T/SEPP plans work (thank you all).
One new idea I am researching: I have two IRAs (two brokers). Can I set up two independent SEPP plans? I am considering Amortization with one and Minimum with the other.
Any issues with this? Any bookkeeping warnings?
Thanks in advance.2017-10-11 01:10, By: KentD, IP: [73.59.85.155]

L2: Two IRAS, two brokers: can I setup two SEPP plans?I do not think so. You can have 2 IRAs with different brokers as components of your SINGLE SEPP 72-T plan UNIVERSE. You can have only 1 method with any single plan.
However, you can have 2 separate SEPP 72-T plans, and use different methods for each plan.
One timing issue that we always recommend is to not have your distribution dates the first 5 or last 5 days of the month, and preferably not the last 10 days so you have time to correct any errors in Dc before 12/31, and not so early in the month so that an early Jan distribution could be sent by the bank or broker in late Dec, which would bust your plan thru no fauilt of yours.2017-10-11 01:41, By: dlzallestaxes, IP: [173.75.252.16]

L3: Two IRAS, two brokers: can I setup two SEPP plans?Yes, you can have two independent SEPP plans, totally independent of each other. They do not have to run concurrently either, and usually do not. Usually, a second plan is only started when it becomes obvious that the first plan will fall short of your annual expense needs for multiple years.
I am guessing that for investment or other reasons you do not want to consolidate these IRAs. One minor tweak you might consider is using the amortization plan for both plans, and partitioning the IRA you were going to apply the RMD method two into two IRAs at that broker. You would end up with two independent SEPPs generating the same total payout you planned for but with a lower total balance, and you would then have a 3rd non SEPP IRA to use for emergency needs. It would provide you some protection against busting one of the plans. This is possible because amortization produces a much higher payout than RMD so allows you to keep some IRA money that is not part of a plan.
Down the road, if you wanted to reduce your distributions you could make the one time switch to the RMD method for one or both of your SEPP IRA accounts.2017-10-11 03:26, By: Alan S, IP: [24.117.172.15]

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