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IRA transfers

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ByMike

L1: IRA transfersCan you transfer your IRA to a different investment company once 72t withdrawals have begun?2004-10-07 14:27, By: Mike, IP: [65.6.117.4]
L2: IRA transfersHi Mike:
The short answer is “YES.”
Now for some questions. When you say “investment company” are you referring to a mutual fund family or annuity company, or do you mean a brokerage firm like M-L or E-trade? If you are going from one fund family to another then you will probably have to deal with sales charges unless you are D-I-Y with a no-load company. If it’s in a brokerage account and you want to make a change, then you can keep the investments and just “ACAT” the whole thing to the new custodian.
One last thought: Charges the custodian makes to the account don’t count as “distributions” and therefore don’t hurt you … except for the fact they take money from you. But if you make additional withdrawals or additions to the account(s) that are part of the SEPP, then you have a “busted” plan. TheBadger may want to weigh in on this aspect.
Good luck.
Jim2004-10-07 15:18, By: Jim, IP: [68.1.157.228]

L2: IRA transfersThis is from annuity to annuity, a traditional IRA. I was given the advice that in doing so the IRS would consider this a material change and bust my 72t.2004-10-08 09:56, By: MIke, IP: [65.6.117.4]

L2: IRA transfersHmmmmmmmmmmmmmm
Let me guess. The person who gave you this advice about “busting the 72t” is the one who sold you the annuity you are considering moving from. Sounds like he/she is more interested in keeping you as a client. Suggest that you think about why you are considering making a move and what will be the financial impact to your IRA.
Will you incur any CDSC (sales charges) by the annuity you move from?
What are the benefits of the annuity you will be moving into?
If you are in a variable annuity, are there any changes you can make within that plan to satisfy the reasons you are considering the move?
And most importantly, will the move be from a variable annuity to a fixed or EIA annuity? My concern her is from a method of marketing EIA’s which I consider quite wrong, but are a discussion for another forum.
Hope this helps.
Jim2004-10-08 11:08, By: Jim, IP: [68.1.157.228]

L2: IRA transfersI agree with Jim – switching from one annuity to another may create a set of problems, but not with the SEPP. You will probably have to file form 5329 in the year of the switch, but all other thing being equal it won”t bust the plan.2004-10-08 11:45, By: Gfw, IP: [172.16.1.71]

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