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1099-R

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ByLefty

L1: 1099-RI have a modest IRA, which I wish to access via a 72t withdrawal, as I am 54 years old. I am currently a member of a state 457 plan and am drawing from an existing account as a retired public employee. My 457 plan can accept my IRA rollover and place it in a separate account with very favorable guaranteed interest rates and very low management fees. They cannot however assure me that I can receive qualified 72t distributions. They will set up withdrawals per my request. My understanding is that my 1099R from them will have box 7 marked with code 2 but due to a software issue the IRA/SEP box will not be checked. Does it need to be? Will I need to file form 5329? Also they indicated I would be subject to some form of excess backup withholding. How do I circumvent the extra withholding?2005-05-15 13:23, By: Lefty, IP: [66.82.9.64]
L2: 1099-RHello Lefty:
If your 457 plan can house the IRA assets then they are a “qualified trustee” within the meaning if the IRC; therefore you can instruct them to make SEPP distributions to you.
1099R coding issues & tax withholding issues are best discussed directly with them as I am not a 457 plan expert.
TheBadger
wjstecker@wispertel.net
2005-05-15 20:19, By: TheBadger, IP: [66.250.23.21]

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