72t via Ameritrade?

You are here:
< Back

L1: 72t via Ameritrade?Idefinitelyneed to set up a 72t for my retirement. Does anyone know if I can set this up with an IRA thru Ameritrade? 2010-07-02 22:09, By: willyd, IP: [69.14.178.182]
L2: 72t via Ameritrade?You can establish a SEPP plan with an IRA through any custodian, because the SEPP is between you and the IRS. It is not a requirement that the custodian even knows that you areexecutinga SEPP plan.That said, there are advantages to using a custodian that supports your plan, since their monitoring may prevent an error that you might commit if totally left on your own. These no cost services may include:1) Checking your calculations2) Monitoring your distributions3) Warning you if you attempt to make a contribution4) Providing the exception coding on their 1099RBut there is also the possibility that they might not be fully informed on all aspects of a SEPP plan, and may try to prevent you from doing something that is allowed. Some custodians have taken a hard line approach to full and partial transfers, although that typically only involves loss of the 1099R coding. This is not critical because most custodians do not offer the exception coding and you can file Form 5329 on your tax return to claim the exception.On balance, I recommend using a custodian who takes an interest and offers some support to you in this area. If you study up on these plans I have no specifics to add regarding Ameritrade. Perhaps others have experiences with them.2010-07-03 00:10, By: Alan S., IP: [24.116.165.60]

L3: 72t via Ameritrade?
I have not set up a SEPP through TD Ameritrade but my wife has a TIRA with them and I manage the account. My experience with TDA has been reasonably good. They do a good job with the simpler aspects of investing. I have done quite a bit of buying and selling of mutual funds and stocks. Their service has been good in this area. The info on their web site regarding SEPP plans is virtually nil, however, and it would be necessary to call them to see what they can do in this area of investing / planning, if anything.
My SEPP was set up with Vanguard and that worked reasonable well. They do not take any interest in a client’s SEPP, however, and it is necessary to file a form 5329 to claim the 72t exception to the 10% early withdrawal penalty tax. Vanguard treats client SEPPs the same way as they do any periodic IRA withdrawal. While this is not particularly helpful, it is also not especially unusual among custodians these days.
That said, a number of people have commented on this web site that they have had very good experiences with Charles Schwab. Apparently, Schwab shows an interest in their clients SEPP accounts to the point of assisting with the SEPP setup and reports a “2” in box 7 of the 1099-R. At least, they used to do this. Don’t know for sure if they still do it or not. I would check with Schwab about an IRA account with a SEPP plan.
Ed
2010-07-04 02:47, By: Ed_B, IP: [71.236.183.224]