Is this info true?
L1: Is this info true?I heard on a Sound Investing podcast that once an individual starts a 72T on an IRA, no future monies can be invested in an IRA. This cannot be true, or am I wrong. Here is the audio file ; it is near the end of the interview.
Thanks for any feedback you can provide.
Gerry2008-02-10 07:16, By: Gerry, IP: [22.214.171.124]
L2: Is this info true?No additional funds can be deposited into the SEPP IRA.
However, there is no problem making additional contributions to a non-SEPP IRA.2008-02-10 07:22, By: Gfw, IP: [126.96.36.199]
L2: Is this info true?Gerry:
I just finished listening to the podcast and I have some comments. The first comment is the “tax expert” lady apparently doesn”t do these shows often, and I suspect it was her first. The guy interviewing her was trying to lead her through the interview and did a lousy job. She”s obviously nervous and answered his questions, eventhough she gave the wrong answer. For 7 1/2 years I did a live, 2-hour, financialtalk radio show and we interviewed lots of people who were considered “experts” on a particular topic. Sometimes these “experts” were only marginally knowledgeable on their subject and it helped that we knew more about their topic than they did so the correct information got out. Anyway, let me address the two, erroneous items the lady presented.
1. You have to take monthly distributions. She presented this as the only distributions available when in fact you can take monthly, quarterly, semi-annual or annual distributions to satisfy SEPP.
2. Once you have a 72(t) / SEPP Plan in place, you cannot contribute to any IRA. This is blatently false and her male interviewer led her down the primrose path on this item. Like GFW stated, you can contribute to a non-SEPP IRA even if you are taking withdrawals from an IRA that is designated as your SEPP Plan. Just remember, you do have to have earned income in addition to your SEPP distributions to make contributions to another IRA.
If you have anyway to contact these folks I would suggest they become familiar with this site if they want to get the correct inofrmation about 72(t), 72(q) distributions.
Jim2008-02-11 08:58, By: Jim, IP: [188.8.131.52]