72t Custodian mistake

L1: 72t Custodian mistakeHello-
We have a client account (who is currently using 72t distributions)custodied at a certain brokerage house…..The brokerage house had to do a prefix change to the account and consequently had to move the funds from the old prefix account to the new prefix account. After the move a dividend was paid in the old prefix account and consequently swept over to the new prefix account. They sent me a notice saying this was a disqualifying event. No money was added to this account from any outside fund. I am at a loss over this…..To me this should NOT disqualify. It was the custodian’s fault on the whole deal….Can anyone back me up on this.
Thanks
2005-01-12 18:06, By: TD, IP: [209.74.135.130]

L2: 72t Custodian mistakeHello TD:
This is classic / typical case of “trailer money”. Obviously, in this case if it was a dividend; then the dividend was earned with respect to an underlying security held in the account. As a result, I don’t see this as an error or disqualifying event of any kind; other than the custodian’s supposed interpretation.
Another way to interpret these same facts is that this is nothing more than a “trustee-to-trsutee” transfer albeit all occurring within the same trustee.
TheBadger
wjstecker@wispertel.net
2005-01-12 19:40, By: TheBadger, IP: [66.250.23.21]