2 IRA’s or 1

L1: 2 IRA’s or 1I am 57 and looking to start 72t plan now. Have $3,500,000 in IRA and question whether I should split into two IRA’s or not. 2017-10-24 21:16, By: RichL, IP: [71.81.213.193]
L2: 2 IRA’s or 1Read FAQ number 4 and 5.
If you want to reduce the amount of distribution to something less than what comes directly from the allowable methods, the answer is yes.
Probably a good idea anyway to create an “emergency fund” from which you can withdraw without busting the plan and paying a penalty.2017-10-24 21:32, By: SOS, IP: [72.207.228.4]

L3: 2 IRA’s or 1Splitting out $500k for any potentialemergencies is a good idea and I will do that. Thank you.2017-10-24 21:49, By: RichL, IP: [71.81.213.193]

L4: 2 IRA’s or 1A 3mm SEPP account will roughly generate an annual distribution of 135k. Do you need that much? It is good to have some cushion for emergencies, but too large a cushion will result in lost tax deferral due to distributions larger than needed.
But this decision is not irrevocable because if you later find that you do not need 135k a year, you can do a one time switch to the RMD method and that will reduce your required payout by perhaps 35%. Do NOT start with the RMD method, use one of the fixed dollar methods so you still have the flexibility available of the one time switch.2017-10-25 02:33, By: Alan S, IP: [24.117.172.15]

L5: 2 IRA’s or 1Just curious why you would want to lock yourself in for 5 years, rather than finding a way to get you to 59 1/2, and have complete flexibility to do all kinds of financial/tax planning, like ROTH CONVERSIONS from 59 1/2 to 70, and deferring SS benefits to 70.2017-10-25 04:14, By: dlzallestaxes, IP: [173.75.252.16]

L6: 2 IRA’s or 1I kind of agree. You seem so close. So the decision comes down to money now vs. total flexibility at 59 1/2.
Maybe there’s some other way? A loan? Or just paying the penalty on enough to get you by.2017-10-25 13:57, By: SOS, IP: [72.207.228.4]

L7: 2 IRA’s or 1Life’s plans do not always work the way you plan and it makes sense to withdraw funds from my IRA.
After deeper thought and coming to the realization that if I withdraw IRA funds for TY 2018 in a few months then after March 2020 I will be 59 1/2 and as suggested I will have more flexibility. Therefore, I will withdraw some funds and pay the 10% penalty for 2018 and hold off further withdrawals until after I turn 59 1/2.2017-10-25 14:19, By: RichL, IP: [71.81.213.193]