72t calculation amount

L1: 72t calculation amountClient came from other firm over to us with a 72t election in place. $2500, on @ 268K in assets. As part of the overall portfolio, he had a 100K annuity showing old investment co. as the owner, for the benefit of the client.As I understand it, the 72t calculation must come all from one account, and can not be mixed. When the account came over, we placed the annuity with cleint as the owner(all else stayed the same)-held at the annuity co, and the balance of his stuff in an investment account with our broker. We continued the 72t dist. as was previously set up. Have we caused a problem by setting it up this way? DBH2002-08-27 13:22, By: DBH, IP: [127.0.0.1]
L2: 72t calculation amountI am not sure if I follow all of the details in your original post, however, your comment: “As I understand it, the 72t calculation must come all from one account, and can not be mixed” is incorrect.The best way to explain this is to assume your client has three IRAs: A, B & C. He originally chooses to initiate a 72(t)/SEPP plan using the sum of A & B but excluding C. He then further, splits A into D & E and Splits C into F & G; finally recombining G into D. So at this point we now have IRAs: C, D, E & F. All distributions must come from DEF but may do so in any amounts as long as the sum is correct; e.g. take all from D, all from F, 55% from E & 45% from F, etc. DEF should be considered a closed “SEPP universe”. As a result, monies can never flow between C and DEF and distributions can never come C to satisfy the original SEPP plan distribution amount.I hope this helps; if not, drop me a note.TheBadgerwjstecker@wispertel.net2002-08-28 14:58, By: TheBadger, IP: [127.0.0.1]