Any problem with using two custodians when one will check the exception box and the other won’t?
L1: Any problem with using two custodians when one will check the exception box and the other won’t?I’m in the process of starting payments from Fairholme fund, which will acknowledge 72(t) payments and Dodge&Cox which will only check the premature distributions box. That means I would need a 5329 form for part of my SEPP and not for the other.
1. Is this going to be a flag to the IRS?
2. If I start payments June 1st of this year, can I use the fund values now while doing the payment process?
Thanks!2009-05-20 18:29, By: bill, IP: [22.214.171.124]
L2: Any problem with using two custodians when one will check the exception box and the other won’t?1. Not likely a red flag, since the majority of IRA custodians are not providing the exception code. Still, there may be a slightreduction in inquiry potential if you take all your distributions from Fairholme, and none from the other IRA. Then you will only get one 1099R and it will have the exception code (at least until they change procedures also). But note that the D&C IRA will still be part of your SEPP account, so you should not lose sight of that.
2. Yes, you can use any value between 12/31/2008 and the present. Not that you would seek to select a date with a low value, but the March values could be somuch less than current and not deemed close enough to reflect the value as of June. The 4/30/09 statement value would probably be your best option, but note that the same date must be used for both IRA accounts initial balances, and you cannot have taken a distribution or made a contribution between the date you select and your first SEPP distribution,2009-05-20 22:05, By: Alan S., IP: [126.96.36.199]