L1: Brokerage House
Does anyone have any recommendations for which brokerage to use for SEPP? I use both fidelity and vanguard for investing. I was just wondering if anyone had any pros or cons for using either one, or another one, for implementing a SEPP plan. Thanks.
2018-01-15 17:10, By: rigger5000, IP: [126.96.36.199]
L2: Brokerage House
You can probably do a search on this website for past comments. I think there have been more favorable ones about Vanguard, and I don’t remember any negative ones. There have been some issues with Fidelity, but it might have been more the representative than the company. I think Vanguard has a specialized department. I’m not sure if Fidelity does.
Some people complain about the coding, but almost all firms now code the 1099-R as an early distribution with “no known exception” because they do not want the responsibility. Even if they got a copy of a birth certificate, they still could not know definitely if you included other IRA’s in your universe, and they would not know if you had other non-deductible IRA contributions. Too many variables, so they have all decided just not to code as if they know these are qualified SEPP exceptions.
The 5329 form is standard with all tax software, and easy to generate or prepare.
2018-01-15 17:37, By: dlzallestaxes, IP: [188.8.131.52]