roth and reg ira

L1: roth and reg iraHello thanks for this forum.I am contemplating a 72t plan. I have a reg ira. I also plan to fund a ROTH ira with $4k, my first roth, by the end of this year. Say I started the 72t in 2007. Can I aggregate the two IRA accounts and use the total as the amount I plan to use as my base to withdraw from? Also, can I only withdraw from the reg ira and leave the roth to compound, even though it is part of the plan? thanks and I hope I made myself clear.regards2006-11-26 21:13, By: cfimx, IP: [69.22.234.46]
L2: roth and reg iraPartial answer– If you plan on adding to that Roth account in the future with same custodian, you will not be able to do that while doing the 72T, or you will “bust” the 72T plan if the Roth is part of your “SEPP Universe”.I also cannot imagine that the $4k addition to your other existing IRA will make much of a difference in the amount you are able to withdraw each year. It would be much cleaner to do the 72T using just the IRA account $$, and not include the dollar value of the separate new Roth account. Do some research before embarking on this plan. KEN2006-11-27 15:51, By: Ken, IP: [151.199.38.159]

L2: roth and reg iraThe technical answer to your question is yes but it is complex. This is clearly a situation not contemplated by Congress when they enacted Roth IRAs via IRC 408A — as differentiated from traditional IRAs in IRC 408(a). There is no problem aggregating a regular IRA with a Roth IRA to increase the corpus considered for the computation of annual distributions. Next, and considerably more complex is when that distribution is made how does one compute the taxable component. Here a miriad of code sections and rules come into play that often conflict each other. As a result, unless the results are materially different, it probably is just not worth the grief to aggregate regular and Roth IRAs.
TheBadger
wjstecker@wispertel.net
2006-11-27 16:35, By: TheBadger, IP: [72.42.66.39]

L2: roth and reg ira thanks gents. I guess since I can take money out of roth anytime exceptfor earnings it doesn”t make sense to complicate things by aggragating.regards2006-11-27 16:40, By: cfimx, IP: [69.22.234.46]