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72t funding from Simplified Employee Pension Plan

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Bybob_93065

L1: 72t funding from Simplified Employee Pension PlanThanks to everyone for all the 72T information over the years.
Being self employed I have fully funded my Simplified Employee Pension Plan (SEP-IRA) for 2006. If I start a 72t this year should I fund my 72T using the SEP-IRAAND myregular IRA
or
should I move my SEP-IRA funds to the regular IRA first and fund the 72t solely from the regular IRA.
I realize if I pursue the first option the SEP-IRA will be frozen and I will need to start a new SEP-IRA for tax year 2007 contribution.
Thanks Bob.

2007-03-16 11:50, By: bob_93065, IP: [75.83.3.171]

L2: 72t funding from Simplified Employee Pension PlanBob:
If you need the funds from the SEP-IRA combined with the funds from your regular IRA to have enough assets to generate the required amount of 72(t) distribution, then by all means do a trustee-to-trustee transfer and only use the regular IRA for your SEPP universe. This will keep it simple and, as you noted, won”t lock-up your SEP-IRA for future use.
Jim2007-03-17 11:46, By: Jim, IP: [24.252.195.14]

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