changing investment strategy

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L1: changing investment strategyI retired from verizon in 2003 and took a retirement buyout instead of an annuity from the company. An investment planner set up 4 72t accounts to draw from (3 now and 1 to draw from if I needed additional funds before turning 59 1/2. These accounts are with Fidelity. I’m working with a fidelity planner now to change how the funds are invested. The accounts will remain the same, including account numbers and distribution, but it will be called a managed portfolio. Will this change trigger the 10% penalty. I turn 59 1/2 the end of June 2010 and don’t want to get hit with the penalty being that close. Thanks2009-12-11 01:11, By: retiredearly, IP: []
L2: changing investment strategyIf the account numbers will remain the same and just the name of the account type changes, there is no problem.But the way you described your setup concerns me somewhat. If all 4 account were added up to determine your initial balance for the 72t calculation, then all are part of your plan. Taking additional monies from the 4th account would bust your plan if the total from all 4 exceeded the 72t calculation.OR – only 3 are actually 72t accounts and the 4th is outside the plan and could be used for emergency withdrawals, but would be subject to the penalty. Determine which of these situations you have and be sure to communicate closely with Fidelity because some changes made to managed account platforms are done without any thinking how they would impact a 72t plan. If the 4th account is truly outside your 72t plan, funds cannot be transferred between that account and any of the others.2009-12-11 05:12, By: Alan S., IP: []

L3: changing investment strategyThanks, That’s the kind of info I’m looking for. I’ll certainly check the status of the fourth account.2009-12-12 00:42, By: retiredearly, IP: []