Asset changes

L1: Asset changesIf I have two IRAs – one using the 72t rules and one normal IRA. Is is allowable to exchange holdings in the two accounts…For example, Can I exchange $10 of cash from the regular account for $10 in XYZ from the 72t account? If the values are the same it, it wouldn’t appear to matter, but the “distribution” rules seem fairly inflexible.2005-02-23 14:08, By: Scott, IP: [199.43.32.17]
L2: Asset changesI don’t totally understand your question, but I wouldn’t start trading (benefiting one at the expense of the other) between the two accounts. If you want different assets in the SEPP, sell and reinvest – same holds true of the other IRA account. 2005-02-23 17:59, By: Gfw, IP: [172.16.1.75]

L2: Asset changesGood morning Scott:
Like Gordon said, I’m not completely sure what your are asking.However, my guess is you want to exchange underperforming assets in your 72(t) account for better performing assets in your non-72(t) account, and avoid any sales charges. If this is true then I think Gordon’s suggestion to sell the underperformers and purchase “better” assetsis best. While doing an exchange may be technically possible, and I’m not sure that is a true statement,I think it is not completely possible from a practical standpoint.
My suggestion is to sell the assets you don’t like and purchase new assets you do like, eventhough it may entail sales charges. Now if you are using mutual funds, you may be able to do an “exchange” within the same family to avoid sales charges and improve your situation.
These comments are general in nature because we don’t know your specific situation. Even if we did know your situation, commenting on specific investments for you through this medium would be totally inappropriate.
Good luck.
Jim2005-02-24 08:40, By: Jim, IP: [70.184.1.35]

L2: Asset changesThanks for the comments – as you both suspect, I am basically trying to “keep” the assets in the 72t, but keep them in a regular IRA. Specifically, the assets are individual bonds that I want to continue to hold. I was simply trying to avoid selling and re-buying the same asset, thus saving transaction fees and a the spread on the bonds.2005-02-28 08:59, By: Scott, IP: [199.43.32.16]

L2: Asset changesScott:
I have read and re-read your questions and Gordon and my responses, and I think I understand what you are trying to do … sort of. The thing I’m really confused about is your statement …
I am basically trying to “keep” the assets in the 72t, but keep them in a regular IRA.
Let me end with what I think will have to go down and why. In your 72(t) IRA, you will have to sell the assets you don’t like and purchase assets you do like. The reason I believe this to be true is the concept that you can’t add or subtract assets once you take your first SEPP distribution from your designated 72(t) IRA or combination accounts which comprise the 72(t) corpus. Swapping assets will probably look to the IRSlike “adding” or “removing” assets. If you have TheBadger’s book, look at Page 71 & 72 under the heading “Account Fracturing and Aggregation.” Also look into IRS Pub 590 for information on adding and removing assets to / from the 72(t) accounts. Sorry I don’t have a page number for you in Pub 590.
Hope this helps.
Jim2005-03-01 16:06, By: Jim, IP: [70.184.1.35]