2nd 72t plan
L1: 2nd 72t planI currently have 2 IRAs at my broker. I have been taking SEPP’s from the one IRA for
the last six years and will continue until I reach 59.5. I am planning on setting up a third
IRA, funded from the IRA which is not part of my current SEPP, and start to take a 2nd
72t distribution. Any problems with the process I have outlined? When I do take the 2nd
72t Distribution, will I still fill out only one Form 5329 at tax time with the combined totals?
Will this 2nd distribution cause any issues with the IRS?2011-01-14 18:31, By: JER, IP: [22.214.171.124]
L2: 2nd 72t planYou can proceed with your plan and partition IRA 2 such that IRA 3 has a value that supports the additional distributions you need. I am assuming here that you did NOT use the balance in IRA 2 for your current 72t calculations.
The second 72t plan will be totally independent of your existing plan and will end later than the first one if the 5 years will take you beyond 59.5. If you busted one, it would not affect the other. You can use a single 5329 as needed to claim the exception on your tax return.
Probably no red flags for the IRS, but if they select you at random you will just have the challenge of presenting them with two sets of documentation instead of one. There will obviously be an extra 1099R.2011-01-14 18:43, By: Alan S., IP: [126.96.36.199]