L1: 72t money
Very quick question. I have had a 72t for 5 years which I set up through this site. I will tell Schwab when I am 59.5 and end the 72t (with all of my principle still in tact).
Prior to going back to work (after this 72t was established) I had opened a small IRA at Schwab. I quit contributing when I started participating in the retirement plan at my new employer. My broker says that we can take this small contribution (at Schwab
also)and actually put it into the 72t account ($5k). Please advise.
2011-11-09 01:19, By: Denver, IP: [22.214.171.124]
L2: 72t money
Most of the IRS and many CPAs have no clue regarding 72t plans. Therefore, it is no surprise that a broker would not understand these plans either.
You cannot transfer the other IRA into your 72t IRA until after your plan ends (aka the modification date). It would be a contribution to your 72t IRA account and bust your plan. In fact, to avoid possible IRS questions, I would
wait until the calendar year after your plan ends to combine the two accounts. At that point it does not matter which account is the surviving account.
2011-11-09 01:27, By: Alan S., IP: [126.96.36.199]
L3: 72t money
CLARIFICATION — You did not indicate your date of brth, age now, or date of your first distribution.
However, it sounds as if you are approaching 59 1/2. If so, your broker might be saying that after you become 59 1/2, or as Alan suggested, in the following calendar year, that you can combine the accounts. That would be correct because your SEPP 72-T would
be over then.
If thisis not the situation, I suggest changing brokers to one who understands these plans.
2011-11-09 04:56, By: dlzallestaxes, IP: [188.8.131.52]