adding to or switching funds in a 72t fund.
L1: adding to or switching funds in a 72t fund.I’d like to move some of my 72t mutual fund to a safer place. As long as I continue the programmed withdrawals at the rate calculated when I began (remaining funds are sufficient to cover the five year period even AFTER the intended switch), is there any problem?
Thanks.2010-03-24 17:59, By: statmanbill, IP: [220.127.116.11]
L2: adding to or switching funds in a 72t fund.Not aproblem, but there is a slight risk in making a partial transfer rather than a total transfer. There is also an added risk in coordinating the distributions when you have two IRA accounts in your plan rather than one. If you do this transfer, you should use a direct trustee transfer to eliminate the 1099R and also to preserve your one allowed rollover should you need to correct an over-distribution within 60 days.Most fund companies have conservative investments that you could exchange into without transferring the funds to an entirely new custodian.For further info, see PLR 2007 20023 on this site under “PLRs of Interest”2010-03-24 20:35, By: Alan S., IP: [18.104.22.168]