Managing ira with CD and other accounts.
L1: Managing ira with CD and other accounts.I have 4 different IRA accounts right now. A brokerage account, and 3 seperate CD’s. I would like to start the 72 next year in Janurary, total value of around 390k. I also want to manage the CD’s as they expire, to renew for different time periods etc. I would always keep them in IRA accounts, but possibly use some of the balance as the 72t distribution for the 5th year. Is it possible to renew these CD’s without getting into issues with the IRS as to it being rolled over with possible new account numbers, etc?2010-08-11 20:45, By: bruce, IP: [184.108.40.206]
L2: Managing ira with CD and other accounts.Do yourself a favor – you have lots of time before January – look for a custodian that will allow you to have an IRA where you control the investment. You can find ourPlanning Pointers at http://72t.net/72t/Planning/PointersOne of those pointers is…
SEPP Custodial Account. Consider using a brokerage Custodial Account for your SEPP plan that allows you to choose investments from any source that you desire. Reallocating your investments within your custodial account is different from doing a Partial Transfer to a new Custodian. Partial transfers were rejected by the IRS in PLR 200925044 & PLR 200720023.2010-08-11 20:57, By: Gfw, IP: [220.127.116.11]
L3: Managing ira with CD and other accounts.”Managing CDS” (i.e. laddering) was fine when CD rates were higher. At the present rates, I would probably just leave the $ in a money market until rates, hopefully, improve. But it may not be in the next 2-3 years anyway.
2010-08-11 21:53, By: dlzallestaxes, IP: [18.104.22.168]
L4: Managing ira with CD and other accounts.I understand it is a little unconventional, but the money market I have at the custodian account (86k), gets literally cents in interest every month. Not only that, periodic mailings inform me the balance may actually go down. So I split over 250K into 2 IRA CD’s (FDIC insured, 250K limit) and took a 6K Cd for last year. So I have 3 CD’s. They will mature next Aug, and my plan would be to try for a little higher rate (1% right now), but keep them with the bank. They would probably be classified as ‘rolled over’ if a new account number is created. By the way the CDs and the custodian are both with US bank. I have lost tons of money in the market with MCI/Worldcom failure, and I do not want to chance losing anything from here on out, thus the CD’s. I don’t see the stock market going up for years to come, instead it will just move up and down, probably more downside. Anyway, I’ll be 55 next January and will start the 72t then. I want to get the money out over periods of time, to keep the taxes resonable, instead of large armount later. I will defenatly get your manual on how to set this up properly, but I’m concerned about the maturing of the individual CDs.2010-08-12 17:12, By: Bruce, IP: [22.214.171.124]
L5: Managing ira with CD and other accounts.One other point, the CD’s mature next August, butI wanted to start a yearly distribution in January. It might be to my advantage tolet the CD’s mature, roll them them back into the Investment Custodian, then pick some sort of CD’s or safe landing for them.That would push my 5 year minimum to 60.5, but Iguess I could live with that.
One thing I have noticed is the complete lack of knowledge of 72t by investment people. It makes you wonder why they are in the field they are in, andmakes you ‘take’ charge of the account. There will probably be no way I will be able to get them to mark the 1099 box correctly.You almost have to take the IRS publication down there with you to talk to them about it.
2010-08-12 17:35, By: Bruce, IP: [126.96.36.199]
L6: Managing ira with CD and other accounts.Companies like Vanguard have expertise with SEPP 72-T, and you could work with their “brokerage” division for your CDs, rather than their mutual fund division. However, short or intermediate term bond funds might be considered to giveyou the safety you are looking for with a higher return than in money markets or CDs, at least with some of your investments.2010-08-12 17:54, By: dlzallestaxes, IP: [188.8.131.52]