ira roll over into sepp plan
L1: ira roll over into sepp planhi, setting up a new sepp…i’m happy with the calculations for my b/d 9/28/1962, with first dist 12/5/2015. my ira account is held at a brokerage. i also have a self-directed ira that has cashflow, held at a diff agency…
question: once the sepp is established, am i allowed to roll-over monies from the self-directed ira into the brokerage account that now is a sepp ira, subject to the irs one roll-over every 12 months rule?2015-11-13 02:42, By: wpbfjr, IP: [188.8.131.52]
L2: ira roll over into sepp planSimple answer: No.
Once a SEPP is established, no additional funds may be added. To move money from one account to the other, they would both have to be part of the same SEPP. 2015-11-13 13:17, By: Gfw, IP: [184.108.40.206]
L3: ira roll over into sepp planYou have some options :
1. Rollover now, and that will establish a higher SEPP BALANCE for your calculation.
2. Separate your SELF-DIRECTED IRA into 2 accounts, and include one of them in your SEPP UNIVERSE i.e. 2 OR MORE ACCOUNTS to be included in your calculation, even if you take all of your distributions from only one of the accounts.
3. Set up a 2nd IRA account, in case you want to start a 2nd SEPP account in the future to take distributions from both accounts.
Explain the reason for your question.2015-11-13 16:21, By: dlzallestaxes, IP: [220.127.116.11]
L4: ira roll over into sepp plan
thank you gfw.
please elaborate: is your suggestion that to comply w/irs rules, move the $ value of the intended SEPP into the self-directed ira, and any increase of account value would be treated as normal growth of an established ira?
dlzallestaxes, since the vehicles in the self-directed account yield returns, i.e. real estate sales/leases (not debt financed income), i’d like to support the sepp ira’s non-depletion.
in your point #2, are you saying the value (appraised in this instance) of the self-directed ira may contribute to the sepp value, with actual distribution funds coming from the brokerage? would this negate the need for ira rollovers?
2015-11-13 20:07, By: w, IP: [18.104.22.168]
L5: ira roll over into sepp planThe first determination re SEPP 72-T plans is ” How much cash flow is needed, after taxes ?”
Then, use the “reverse calculator” on this website to determine “How much account balance do I need to generate that cash flow ?” Let’s assume you will need $ 750,000.
If this calculation shows that you need less than the full balance of 1 account, then split off the part that you need for the SEPP 72-t, and leave the rest alone for later. Ifone account has $ 1 million. and the other has $ 350,000, then transfer $ 250,000 from the larger account to the other IRA account, and you will have $ 750,000 in your SEPP, and $600,000 in your non-SEPP IRA.
If this calculation shows that you need more than is available in 1 account (assume you had only$ 600,000 in theboth of twoaccounts), then you can either transfer more from a 2nd account into the 1st account ($150,000), or split off the additional balance into a 2nd account ($ 150,000). Then you would leave the “unused balance” of $ 450,000 in a 3rd account. In this scenario, your SEPP UNIVERSE would be the balances in the first and second accounts totaling $ 750,000, and you would have $ 450,000 for future emergencies or to start a 2nd SEPP later, if needed. You could also set up 2 SEPP plans, possibly taking 100% of the annual distribution from one of them in Dec, and 1/12of the other annual distribution from the other.
It all depends upon your total IRA balances, and your cash flow needs for the next few years, because you could take more than you need at this time to fund possible future shortfalls, depending upon your tax situation for 2015 and 2016.
If you give us all of these facts, then we might be able to give you some more specific ideas.2015-11-13 20:34, By: dlzallestaxes, IP: [22.214.171.124]
L6: ira roll over into sepp planthank you, i see the risk of locking down too much in one account…i’ll do the calcs and account moves to your suggestions…2015-11-14 02:58, By: wpbfjr, IP: [126.96.36.199]