Is new IRA exempt from previous 72(t) requirements

L1: Is new IRA exempt from previous 72(t) requirementsI am currently receving a 72(t) distribution from an IRA established when I left another company. I currently have a 401k at my current company to which I”m contributing. If I should leave this company after I turn 59 1/2, but before the minimum five years is up in which I must receive the 72(t) distribution from my current IRA, will I be able to withdraw money from the second IRA with no penalty?2007-06-26 10:45, By: Pat, IP: [65.5.91.2]
L2: Is new IRA exempt from previous 72(t) requirementsHello Pat:
72(t) / SEPP Plans are mutually exclusive of each other. Each will have it”s own account number so you will receiveseparate Form 1099-R”s for each plan, even if you use the same custodian. Just be sure the single custodian establishes the two, separate account numbers. So, yes, you may start a second SEPP Plan and the first plan will have no effect of the second one.
However, since you will have a 401(k) plan from your current employer and you will have retired during a year that your age is 55 or greater (“after I turn 59 1/2”), then you can use the “age 55 exception,” assuming your K-plan is “withdrawal friendly” for you. Many will not support systematic withdrawals and will only allow one for the IRArollover. Here”s the rule. If you retire during the year you turn age 55 or older, you can withdraw from your K-plan without paying the 10% penalty because it isNOT an early withdrawal. If, however, you transfer to an IRA and your age is less than 59 1/2,then you will have to deal with the 10% penalty.
Now back to your scenario. Since you will retire after your age 59 1/2, you can move into an IRA and make as many and as large a withdrawal from your non-SEPP IRA account and will not have any IRS penalty. You will only be subject to the normal, “ordinary income” taxes on the withdrawals.
Hope this helps.
Jim2007-06-26 13:56, By: Jim, IP: [24.252.195.14]

L2: Is new IRA exempt from previous 72(t) requirementsYes, that is exactly what I needed to know! Thank you so much! 2007-06-27 10:42, By: Pat, IP: [65.5.91.2]