401k to IRA

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L1: 401k to IRAI retired in 2007.I rolled the total amount of my employers 401K into an IRA on Jan.14, 2010, both managed by Fidelity. I plan to start SEPP on the IRA this month at the age of 54. Can I use the closing balance on my Dec. 31/09 401Kstatement to calculate my distributionpayment from the IRA?2010-01-19 18:08, By: Joe, IP: []
L2: 401k to IRANo. You must use an account balance from the same account that is funding your SEPP plan. You cannot use a balance from a different type plan even though it would ostensibly be the same.One potential pitfall here are distributions known as trailing distributions to your 1/14 rollover. If a stock in your 401k pays a dividend after your rollover, the plan will automatically roll it into the same IRA you set up and that would mess up your plan.The solution is to transfer all but a very small amount of the IRA by direct transfer into a new IRA at Fidelity and use that new account for your SEPP. Any late dividends will then go into the first IRA, which will NOT be part of your SEPP plan. While this IRA will be very small, you can use it for an emergency fund to get extra distributions in the future. Of course, distributions from the small IRA will be subject to the penalty, and that small IRA will not be part of your SEPP opening balance.For your opening account balance, use the first statement you can get from the new IRA, even a copy of an on line statement will do.2010-01-19 18:56, By: Alan S., IP: []