72t for multiple IRA”s

L1: 72t for multiple IRA”sI have 4 IRA’s with different investment strategies set up at a fairly large asset mgt. firm. I would like to include them all in my SEPP universe, but plan on making all withdrawals from a money market account that resides in one of them. I will direct all dividends, long term gains and any profits I may need to take, to this money market acct from the other IRA’s.
I have purchased & read Bill Stecker’s “Practical Guide to SEPP’s”, and understand that this is perfectly acceptable. Problem is, my investment firm says the only way they can set up a 72t for an IRA is to set up one for each IRA individually and make the appropriate distribution from each. Obviously, I don’t want to do this because of the uncertainty of the performance of any given IRA at a particular time. All distributions will, however, come from within my universe.
What can I do to convince them they can do this?
Bill2006-02-11 19:25, By: vaboy, IP: [69.170.54.155]

L2: 72t for multiple IRA””sYou are correct, but not knowing whether their policy comes from ignorance or just an internal procedure to perhaps avoid becoming culpable for busted SEPPs, you might make some copies of selected posts from this site. Prior to that, ask to speak to their authority on the subject, and maybe they will see the light.
BUT….., if you cannot convince them to allow you to aggregate your distribution from the one account,why nottake the MM fund and partition it relative to each IRA account balance and have them directly transfer the correct amount into each fund? You could then take a SEPP distribution from IRA without affecting your strategy and they would more likely code it a “2” on the 1099R. The beginning balance would be each account’s balance right after the transfer. In later years, if one of the money funds runs dry, you can have it corrected by some combination of direct transfers from the other SEPP accounts.
That said, if you have sufficient funds, then you know it is also advisable to have at least one account left out of the universe for emergency purposes to give you a margin of error if you need more money without busting the SEPP.2006-02-11 22:22, By: Alan S., IP: [24.116.165.157]

L2: 72t for multiple IRA””sThanks, Alan for the great idea! And I think you’re right about their position in both respects..partly ignorance about the validity of a SEPP universe and partly because they want to adhere to the most conservative policy to protect themselves.
Only problem withmoving the MM funds is all the accounts except one are managed accounts (which also have MM accts within them).They move money in and out of the MM acct.to keep the portfolio balanced to the model.
BUT, if I have them do a direct transferfrom the main MM acct to the other 3 MM’s and make the quarterly distribution immediately, then I can simply use them as conduits to allowthe appropriate payment from each IRA. A little more cumbersome than if they would simply make the distribution from the one MM acct., but it takes care of my problem. Thanks, again!2006-02-12 00:21, By: vaboy, IP: [69.170.54.155]