401 rollover

You are here:
< Back

L1: 401 rolloverIf I roll over 401 into self directed ira, can 72t still be taken?2008-09-23 07:55, By: Boon, IP: [206.247.49.4]
L2: 401 rolloverYes. In fact it”s easier to process and manage SEPP distributions as well as manage the investments if you use an IRA instead of a K-plan.Jim2008-09-23 08:28, By: Jim, IP: [70.167.81.119]

L2: 401 rolloverThe term “self directed IRA” has been co opted over the last few years to mean an IRA with specialized custodians offering alternative investments, often real estate investments. The original term was used to mean simply an IRA in which you choose from many traditional investments instead of alternative investments. Therefore, we do not know for sure what you mean by “self directed”.If you are referring to an IRA holding real estate, you can still conform to the tax requirements of a 72t plan from such an IRA, but you would be combining the rigid 72t requirements with an account heavily exposed to such things as UBIT tax and various prohibited transactions. This is a toxic combination and I do not recommend it except in very unique situations. It might be interesting if you use one of the large self directed custodians such as Guidant to see what they say about setting up a 72t plan and if they have ever done it. 2008-09-23 13:28, By: Alan S., IP: [24.116.165.60]

L2: 401 rolloverBefore you roll over a 401-K to an IRA, see if you have any NUA ( Net Unrealized Appreciation) company stock in your IRA because there are special tax provisions which can significantly reduce your income taxes. Also, if you are, or will be 55 in 2008 (or 2009), and have “separated from service” from that employer, then “search” this website about the special provisions which will guide you to not roll it over because there is no 10% penalty for 401-K distributions between 55 and 59 1/2.2008-09-24 09:43, By: dlzallestaxes, IP: [96.245.168.66]

L2: 401 rolloverIt is a 401a and as far as the self invest- to invest in etfs and I wont be 55 till 20102008-09-25 06:14, By: Boon, IP: [206.247.49.4]