IRA Account

L1: IRA AccountI have 3 IRA accounts cash, stocks, bonds how does onedecidewhich account is best to use for 72T? Thanks!2005-11-12 08:56, By: Diana911, IP: [209.179.250.238]
L2: IRA AccountYour question is really an invetment question, not a SEPP question. You may want to direct your question to your Invesment advisor. 2005-11-12 10:16, By: Gfw, IP: [172.16.1.73]

L2: IRA AccountThere are several factors to take into consideration.
1. Do you need all 3 accounts to provide the total balance needed to generate the distributions you NEED from the SEPP 72-T plan ?
2. If not, then I would use the cash and bonds accounts because you will probably need cash withdrawals because you will be spending the money after you withdraw it.
3. Consider your current age, and 5 years from now. If you will be over 59 1/2 by then, you could terminate the SEPP 72-T at that time.
4. Discuss with your financial advisor and /or tax practitioner the philisophical aspects of fixed-interest vs. stock equities in IRAs. Ideally, in my opinion, non-retrirement accounts should be the ones used for long-term investments in stocks and equity mutual funds because the dividends and capital gains tax rates are usually 15% (or 5% for lower-income taxpayers. And retirement accounts (IRAs etc.) should be in fixed-interest investments because the income tax rates are usually 25%-35% (or 10% or 15% for lower-income taxpayers) not only on all interest and dividend income, but also on capital gains, whenever the distributions are taken. This is the result of the fact that all retirement distributions are taxed at the ordinary income tax rates. If you are going to “trade” within your retirement accounts, rather than holding investments > 1 year, then it doesn’t matter. Some financial advisors may argue differently, but that is my opinion, as well as many others in numerous articles I’ve seen. (ROTH IRA investments should be in growth stocks.)2005-11-13 00:17, By: dlztaxes, IP: [4.175.9.184]

L2: IRA AccountThanks Gorden your opinion is much to be valuedI’m sure this information will benefit others as well.2005-11-13 06:28, By: Diana911, IP: [209.179.250.61]