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Immediate annuity SEPPs

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Last Updated On
ByADS

L1: Immediate annuity SEPPsCan I combine an immediate lifeIRA annuity with a brokerage account IRA for the purpose of having one SEPP calculation or will that result in two separate SEPPs? The idea is to move transfer monthly the annuity payments into the brokerage IRA so that one distribution check will be created.2010-05-11 20:09, By: ADS, IP: [12.104.244.6]
L2: Immediate annuity SEPPsYes. Just make sure to document balances that you are using to establish your annual distribution. Also, make sure that the annuity cash flow, plus cash in yourSEPP 72-T, provides the cash you need for your distribution in your first calendar year,as well as for thedistribution in every year thereafter.2010-05-12 00:54, By: dlzallestaxes, IP: [173.49.30.37]

L2: Immediate annuity SEPPsDo you already own and are currently receiving monthly payments from the Immediate Life IRA? If so then you do not need 72(t) to avoid the 10% early withdrawal penalty. If you need more money then start a new 72(t) plan with the brokerage IRA. Furthermore, if this is the case then the Immediate Life IRA annuity has no value for valuation purposes to include in a SEPP Plan universe.On the other hand if you haven’t bought the annuity, check to see if the brokerage IRA will hold the annuity with the payments dumping into the account for distribution purposes.Jim2010-05-12 14:59, By: Jim, IP: [70.167.81.119]

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