Elite Firm Issues misleading 72t article
L1: Elite Firm Issues misleading 72t articleIt is quite surprising that a firm like CCH would release something as superficial and misleading as this. They do not mention the letter ruling, but it appears to be PLR 2009 25044 on the basis of the 56 year old taxpayer and the rest of the detail.
Basically, all they say is that the IRS has busted a plan for a partial transfer without even mentioning that the 72t universe was violated by commingling a non 72t IRA into the transfer. This will certainly go a long way to make many participants and financial planners very nervous about the status of their plans.
The important conclusion of this PLR is NOT that partial transfers cannot be done, but rather that an error correction transfer to back out a violation of the SEPP universe will not be approved under these circumstances. I do not believe that there are any blanket conclusions that can be taken from the PLR with respect to circumstances that vary from the fact pattern in this case.
This is certainly not the impression that CCH leaves. Here is the link:
2009-08-04 01:59, By: Alan S., IP: [18.104.22.168]