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72 T Distribution

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Last Updated On
ByCGA

L1: 72 T DistributionIf you roll over a 401K into an IRA at a brokerage account. Then transfer some of the assets (still under IRA) to different investment companies, does it matter where you”re able to take the maximum distributions from? Example: If the max I can take out is $1000 mo. And I have 4 investments (IRA) at 4 different companies do I have to take out $250 from each or can I take $1000 from any one?

2007-02-15 11:17, By: CGA, IP: [74.241.121.58]

L2: 72 T DistributionYou can do as you stated, however the risk of complications or errors is increased somewhat.
You can have any number of IRA accounts out of which any number can be designated as your SEPP universe. You can then aggregate your SEPP universe accounts for purposes of the distributions in the same manner that you can aggregate your IRA accounts for RMD distributions. Just don”t get mixed up and transfer or roll funds between an account in your SEPP universe and one of the other accounts, or you will have busted your SEPP. Actually, you have a 60 day rollover period to correct any such error, but after that you”re stuck.
While thorough documentation of your SEPP calculation is always necessary, in this case that need is further increased, not only to prevent error, but to enable you to respond to any inquiries. Your chances of getting a 1099R exception code are additionally reduced as well by this practice.
2007-02-15 12:28, By: Alan S., IP: [24.116.66.98]

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