72t Rollovers In & Out
L1: 72t Rollovers In & OutIs the following strategy permissible? I have two traditional IRA’s, both at the same institution. From one IRA I begin 72t withdrawals using the RMD method. The other account has no withdrawals. Late in the year, I look at the balance of my “72t” IRA and if the projected RMD for the following year is lower or higher than I desire, I do a trustee to trustee transfer (effectively a journal) between the two IRA’s to bring the balance of my 72t IRA in line with the projected RMD amount I desire. Bottom line question is, once I begin a 72t scheme am I permitted to either roll in or roll out of that IRA from/to another IRA?2013-03-12 23:37, By: GMAN, IP: [184.108.40.206]
L2: 72t Rollovers In & OutNot if you computed the original payment planfrom just the balance in one of the IRAs. That would bust the SEPP plan.2013-03-12 23:46, By: Ken, IP: [220.127.116.11]
L3: 72t Rollovers In & OutHowever, if both of the IRA’s were used in your calculation of the annual distribution, you can take distributions from either account. For example, you may not have enough cash in one account, but enough in total in both accounts. Or one account might be performing better than the other, or you want to “re-balance” your portfolios and sell one type of investment rather than another.2013-03-13 00:13, By: dlzallestaxes, IP: [18.104.22.168]
L2: 72t Rollovers In & OutGMAN… Ken was absolutely correct. And if you started with one and implement your stratgey, you may hear from the real GMen, or at least the IRS. 2013-03-13 00:10, By: Gfw, IP: [22.214.171.124]
L3: 72t Rollovers In & OutBased on your original post you have identified one IRA as your SEPP Plan and the other IRA as not part of your SEPP Plan.
Your SEPP became “busted” the first time you transferred funds into the SEPP Plan IRA.
It’s time to clean up this mess.
Jim F2013-03-20 14:14, By: Jim F, IP: [126.96.36.199]
L4: 72t Rollovers In & OutWhen did you start this plan ?
How much have you withdrawn from your SEPP IRA account since you started ?
Multiply this amount by 10%. That is your additional tax/penalty for busting your SEPP plan the first time that you transferred funds from thw non-SEPP IRA into the SEPP IRA account.
Pay this amount, and start over doing things the right way, possibly by paying a professional, which is much less expensive than doing it wrong yourself.2013-03-22 00:48, By: dlzallestaxes, IP: [188.8.131.52]