72t can you use split the IRAs but use the total for calculation?

L1: 72t can you use split the IRAs but use the total for calculation?I am 55, I plan on start taking a new 72t in a month or so. I have one Traditional IRA I am using the calculation from. But the custodian is not 72t friendly. Would it be IRS okay to split the amount to use for the 5 years I plan to distribute the 72t payments to a another custodian that is 72t friendly. I may use a SPIA (immediate Annuity) for the 72t payments or I may just move the 5 years worth of funds and invest in mutual funds. Nevertheless my question is can i calculate the SEPP payments from the first IRA then split off the amount needed to use for the intended 5 yrs? Thanks2017-01-27 12:22, By: Bri, IP: [24.144.147.161]
L2: 72t can you use split the IRAs but use the total for calculation?Can you split your IRA between 2 custodians. Yes, but could run into issues with the IRS for doing a partial transfer.
Remember, if you run into issues with the IRS, a “72t friendly” custodian will not be of much support – an IRA is between you and the IRS. Learn what you need to learn and don’t worry about finding a “72t friendly” custodian – manage it yourself or find a professional to assist you.
From your post, are you sure you understand how a SEPP works? Based on your age, you are probably looking at a 5-year plan. That doesn’t mean that you can use a 5-year immediate annuity. The SEPP distribution amount is based on your life expectancy, the SEPP rate for the month distributions begin and the total dollars allocated to the SEPP, not the number of years in the SEPP plan.2017-01-27 12:45, By: Gfw, IP: [216.80.120.234]

L3: 72t can you use split the IRAs but use the total for calculation?If you also have a 401-k/403-B, and have already, or are planning to, separate from service with that employer, then you probably do not want to do a SEPP 72-T. Also, if you have a 401-K that is invested with some employer stock (usually for their matching contribution), then you should talk to you plan administrator about NUA (Net Unrealized Appreciation) provisions of the tax code.
In addition to gfw’s excellent response, you have to make sure that the cash flow from the annuity would provide more than enough cash to satisfy the annual distributions, and the federal and state income taxes, and leave you with enough net cash flow for your needs.2017-01-27 17:20, By: dlzallestaxes, IP: [173.59.24.3]

L3: 72t can you use split the IRAs but use the total for calculation?I appreciate the help. What I am doing is using the Total amount of IRA monies for my SEPP calculation. Needing 5 years of distributions then solving what I need as a lump sum to transfer out of the one IRA i own to solve for for the amount needed for the IRA transfer so I can stay within the IRS guidelines for a 72t. Yes, I am basing the life expectancy for all of my IRA monies for a 5 year plan I just would like a guarantee return for the 5 years of payment.2017-01-28 14:54, By: bri, IP: [24.144.153.36]

L4: 72t can you use split the IRAs but use the total for calculation?Bri,
There is no such thing as a friendly custodian as you are ultimately responsible for the 72T. I found this site in 2006 and stayed with it until i had a firm grasp to start mine in 2012.
A 5 year plan means you’ll turn 59.5 prior to the expiration of the SEPP. It is cructial you understand what this means. You must take 60 months of payments. If you start the plan in June and take a full year payment in the 5th year you get nothing until after it expires. For those of us who started our plans prior to 54.5 the regulation is much less stringent.
Use the calculator on this site without the life expectancy data. if i remember right it will provide a higher amount. With today’s current historic low interest rates you want to get as much as possible.
Good luck to you and read as much as possible here as there are some great posts full of information. Alan S has some of the greatest clarity as well as the OP GFW.2017-01-28 15:38, By: Scott, IP: [71.80.223.7]