72(t) transfer to new custodian

L1: 72(t) transfer to new custodianWe split an IRA Rollover into two separate IRAs in February of 2006. The client is taking SEPP withdrawals from one of the IRAs. Due to investment performance, it has been recommended thatthe account that the client is taking withdrawals from be transferred to a new custodian. The SEPP payments will remain as originally calculated. We recently received a news alert from another custodian that indicates the IRS may deem this a substantial modification of the 72(t). Is there anyone else that has heard of this? Our understanding is that a change of custodian if everything else remained the same, would not be deemed as a substantial modification.
2007-10-01 09:00, By: Ellen, IP: [208.57.104.2]

L2: 72(t) transfer to new custodianStart by searching the forum posts for PLR2007-20023 and then check out Bill”s article at http://72t.net/Articles/ArticleShow.aspx?WA=260
2007-10-01 12:17, By: Gfw, IP: [74.136.102.241]

L2: 72(t) transfer to new custodianEllen,
Also see recent thread by session52 that discusses a near identical question, and how the IRS seems bent on changing the rules without providing a rational explanation.
However, it seems many of these transfers seeking better investment results, diversification etc could easily be avoided if prior to setting up the intial plan, an IRA custodian such as Schwab, Fidelity, Price, Vanguard etc that provides an investment “supermarket” facility should be selected. Then there would only be a need to change investments, not to transfer accounts. If your advisor works with a narrow set of custodians, it is that much easier for a new advisor who also works with his own different set, to push you into a transfer. Havinga busted plan is not worth the risk nor is the worry about having a busted plan, because the worry can go on for years. Note that in PLR 2007 20023, the initial transfer was done 7 or so years ago……………..
2007-10-01 13:56, By: Alan S., IP: [24.116.165.60]

L2: 72(t) transfer to new custodianI am in the process of changing from one annuity company to another but will use the same accounts and draw the exact same dollar amount (not a new figured amount). One company says I will be hit by the IRS and one says I won”t. My account says I shouldn”t have a problem, but why not wait until my five years are up to make sure. I have read the responses you have received Ellen and I am still not clear. What are you thinking at this point?2007-10-05 13:28, By: Penny, IP: [12.213.112.36]