Are there rules governing investing allocation and frequencies of a designated 72(t)

L1: Are there rules governing investing allocation and frequencies of a designated 72(t)I manage my own IRA and am thinking about starting a 72(t). Once an account is designated a 72(t) is it posibbletochange the types of investments in the 72(t)? Or, are you locked into types of investmentsand allocations of investments in the 72(t)?2009-12-14 15:10, By: Mike, IP: [205.188.116.72]
L2: Are there rules governing investing allocation and frequencies of a designated 72(t)Mike,No, you are not locked in at all. There are no rules limiting investments that are legal for an IRA in the first place.You can invest in anything that your IRA custodian supports, although illiquid investments should be limited to amounts that will not hamper taking your annual 72t distributions. CDs must be carefully laddered so you do not have to take bank penalties to free up the cash for distributions. If you ever decide to make the one time switch to the RMD method, your year end values need to be determined, which can mean an appraisal if you have real estate in any of your 72t IRA accounts.If you have otherretirementor investment accounts outside the 72t plan account(s), you could either place themore volatile investments in them OR in your 72t IRAs depending on what your strategy is. If your 72t account goes broke, it does NOT bust your plan, the plan simply ends, and you would have to start a new one if the circumstances still call for one.2009-12-14 17:21, By: Alan S., IP: [24.116.165.60]