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72t lump sum payout before last payment date

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Bynordees

L1: 72t lump sum payout before last payment dateLet’s say I’ve been taking monthly SEPP payments for the past 6 years and my last payment date is just 9 months away for age 59.5. Instead of taking monthly payments can I take all 9 months at once to satisfy my entireSEPP andtransfer the IRA to a new custodian to try to get a better return? If I cannot transfer the IRA have I satisfied my 72t SEPP distributions?
Thanks!
2005-11-09 22:09, By: nordees, IP: [67.139.119.239]

L2: 72t lump sum payout before last payment dateYou can do the transfer anytime that you want just because you are locked into the SEPP doesn’t mean that you are locked into the Custodian.2005-11-10 04:33, By: Gfw, IP: [172.16.1.73]

L2: 72t lump sum payout before last payment dateI sense a note of caution is in order when your ask:
If I cannot transfer the IRA have I satisfied my 72t SEPP distributions?
You must meet all elements to “satisfy” 72(t); 5 years of distributions and age 59 1/2. The caution note is that if you do transfer to a new custodian for a “better return” on your assets, just be sure you don’t add or withdraw any funds, except normal SEPP distributions of course,until you really are age 59 1/2. There are no restrictions on trading assets within the IRA, just no adding or subtracting assets within the time parameters.
Hope that’s clear.
Jim2005-11-10 09:16, By: Jim, IP: [70.184.1.35]

L2: 72t lump sum payout before last payment dateOne more thought on “getting a better return.”
Since you can’t grow your IRA after you withdraw the money, consider changing custodians and keeping the same distribution schedule until your reach age 59 1/2. This way you will have more assets for investing and potential growth while taking distributions, unless of course if you need a lump sum now.
Jim2005-11-10 09:21, By: Jim, IP: [70.184.1.35]

L3: 72t lump sum payout before last payment dateJim in re: to your answer to Nordees please elaborate on “This way you will have more assets for investing and potential growth while taking distributions, unless of course if you need a lump sum now”. What penaltys if Nordeesdecides she needs the lump sum now? 2005-11-10 10:32, By: Diana911, IP: [209.179.194.132]

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