I wish to start a 72t next month. I have an ira ,but the monies are split into different mutual funds, and each of these has a different account number. Question is can I do the 72t on all of these funds or just one?
2012-01-26 00:01, By: bobby, IP: [184.108.40.206]
The IRA account number reflects the assets subject to a 72t plan, not the fund account numbers within that IRA. However, we need to be sure that you only have one IRA account number. Who is the IRA custodian?
2012-01-26 00:07, By: Alan S., IP: [220.127.116.11]
L3: 72tAre you invested in mutual funds from different “families”, like Vanguard, Fidelity, T Rowe Price, Oppenheimer, etc ? Or different funds all from the same “family”. Are they invested at a broker, or at the fund(s) ?2012-01-26 00:28, By: dlzallestaxes, IP: [18.104.22.168]
t rowe price is the company, but there are different acc#s for each mutual fund.
ex: abcd mutual fund401k rollover acc# 12345678
efgh mutual fund401k rollover acc# 12349876
ijkl mutual fund 401k rollover acc#1236543
I did a 401k rollover ,but wanted to de diversified into different mutual funds, but I need all of the money for a 72t for income. thanks bobby
2012-01-26 13:54, By: bobby, IP: [22.214.171.124]
Different mutual funds at the same “family” are no different than different stocks in a broker account. Also, you can have different mutual fund families in the same broker account, if you want to diversify to include various fund families.
2012-01-26 16:07, By: dlzallestaxes, IP: [126.96.36.199]
In the past fund companies would issue one “Account Number” and use different “Fund Numbers” for each different mutual fund within the account. For example, ABC Fund is Fund # 100, DEF Fund is Fund# 125, etc. So it was simple to start a SEPP Plan in this
example because you only had one “Account Number” and the IRS was OK with that.
However, now a lot of fund companies are using different “account” numbers instead of “fund” numbers to differentiate individual funds, which sounds like your situation. You would have to set up individual SEPP Plans on each individual fund since they have
different “account” numbers. This is NOT the way you want to run this “railroad” (SEPP Plan).
If T Roe Price offers a “Brokerage Account” platform, and I think they do, then open this type account for your IRA and put all of your mutual funds in it.
Think of a box of rocks: The box is the IRA and the rocks are the different investments within the IRA. You can have anytype and quantity of mutual funds, individual stocks and bonds, REIT’s, and other types of investments within the IRA “box.” You will
only have one (1) IRA account number for IRS reporting but you can buy, sell and exchange the individual investments (rocks) without fear of busting your SEPP Plan. Within the IRA “box” you will have a “cash account” like a Money Market Fund. You may have
a systematic withdrawal going on one or more of your funds and the proceeds “sweep” into the cash account from which the SEPP Plan distributions are made.
Hopefully this helps.
2012-01-26 17:06, By: Jim F, IP: [188.8.131.52]