equal distributions

L1: equal distributionsMy financial advisor has changed investment firms. I have signed transfer payments to transfer everything but we are not sure if everything will be set to go so I can get my distribution on the first of July. If they cannot make this distribution on July 1, their plan is to make two distributions on August 1. Will this cause a problem with my 72t? I don”t want to do anything to cause a problem with the government. Thank you for ant info you can give me.2006-06-24 08:27, By: Nancy, IP: [204.193.204.135]
L2: equal distributionsGood morning Nancy:
The requirement is to have the total, annual amount equal the correct amount. There should not be any problem making two distributions in August if the one in July doesn”t process. Just keep track of who distributes what amounts and that the total amount for this year is the correct amount. As a safeguard, be sure to instruct your broker to terminate all distributions from the old firm before processing the transfer to the new firm. By doing this you have recourse if the old firm continues to make any additional distributions to you that would mess up the total, annualamount.
After the transfer occurs, expect some “residual money” to transfer into the new firm”s account. This is common as interest and dividends and other types of income come into the old account and should be automatically transferred to the new firm”s acount. Be sure this occurs as they sometimes don”t process these late transfers and you wind up with two accounts open and the old one has $1.32 or some other odd amount left in it.
Jim2006-06-24 09:06, By: Jim, IP: [70.184.1.35]

L2: equal distributionsIn addition to Jim”s good advice, since you apparently have been taking first of the month distributions and will continue that, about Dec 10th, review your total distributed amounts from both firms for 2006 to be sure that they are equal to your 72t amount. If not equal, it gives you a couple weeks to request any additional amount if you are short, or roll back excess amounts if you are over. You should monitor this each month actually, but the Dec checkup is added insurance that a mess has not been created at the last possible time to take corrective action.
You may also end up with one or both firms not providing a “2” code on your 1099R form, and you may have to attach a 5329 to your return to claim the 72t exemption from penalty.
2006-06-24 16:23, By: Alan S., IP: [24.116.165.157]