72-T trustee to trustee transfers

L1: 72-T trustee to trustee transfersThanks for all of the great information!
I have received conflicting advice re: moving existing 72-t plans. One interpretion of 2002-62 is that any non-taxable transfer to another trustee of existing assets is considered a modification and therefore a no-no; another interpretation says it’s okay. In reading the ruling, Section 2.02(e)(ii) states “any nontaxable transfer of a portion of the account balance to another retirement plan” will be considered a modification and therefore will trigger the dreaded 10% penalty. What say you all?
Thanks, Byron2002-10-12 11:09, By: Byron, IP: [127.0.0.1]

L2: 72-T trustee to trustee transfersGreat Question! However, the key to the wording lies in “to another retirement plan”. You aren’treally changing plans when you do a trustee-to-trustee transfer, you are merely changing the Trustee or Custodian.
An IRA plan doesn’t cease to exist and it isn’t re-created during the transfer from one organization to another. A true change in plans would be a transfer from an IRA back to an employer sponseredpension plan or a 401(k) account transferred to an IRA. 2002-10-12 11:52, By: Gfw, IP: [127.0.0.1]