72 T distribution across multiple account
L1: 72 T distribution across multiple accountI have 3 different accounts set up and have been making a lump sum draw across the 3 accounts for the last 2 years. This year on my draw the brokerage firm pulled the same lump sum amout, but only drew it across 2 of the accounts and none from the 3rd account. I question them on this and their response was that it was OK as long as the lump sum total was the same. Seems to me like this could possible be a bust on all 3 account. does anyone have ant thoughts on this. If this is not correct I want to get it straight before it is too late.2008-06-11 18:46, By: Tom, IP: [22.214.171.124]
L2: 72 T distribution across multiple accountTom,You are OK as long as you have a single SEPP plan over all 3 accounts that used the total balance of all of them to establish your plan. Your distribution can be aggregated over the 3 accounts in any proportion as long as the total distribution for the year is taken.
It will be interesting now to see if the broker is in sync with their tax Dept, but your 1099R should be no different than in prior years. If they provide one without the exception code for a SEPP, use Form 5329 to claim the exception.2008-06-11 19:58, By: Alan S., IP: [126.96.36.199]