72T Changing IRA Custodians

L1: 72T Changing IRA CustodiansDetails
59 year old retiree
$500,000 IRA, which is being used for 72T distributions
2 years left to satisfy their 72T commitment
Withdrawals are $3,000 per month
Could this individual leave $100,000 in their current IRA and contineu taking the $3,000/month for 72T distributions, while reinvesting the remaining $400,000 (without any distributions being taken) with a different custodian without causing IRS early withdrawal penalties. 2004-11-10 08:32, By: Ty, IP: [66.188.225.154]

L2: 72T Changing IRA CustodiansYES.
TheBadger
wjstecker@wispertel.net
2004-11-10 08:43, By: TheBadger, IP: [66.250.23.22]

L2: 72T Changing IRA CustodiansGood morning Ty.
Bill’s concise answers generally inspire more questions and this is no exception. The question is, “What are you planning to do with the $400,000 that you move to another custodian? Are you just moving to diversify the total investment program, or are you planning to add or withdraw assets from the base $400,000?” If you simply diversify then no problem, but adding or withdrawing would be a problem.
Jim2004-11-10 09:14, By: Jim, IP: [68.1.157.228]

L2: 72T Changing IRA CustodiansJim, thanks for your reply. The $400,000 with the other custodian will not be added to or drawn from. It is simply for diversification reasons. We will continue taking the full 72t distributions from the $100,000 left with the current IRA custodian. From what you can tell, this won’t jeopardize the 72t regulations?2004-11-10 16:01, By: Ty, IP: [66.188.225.154]