Moving IRA that currently has 72T distributions
L1: Moving IRA that currently has 72T distributionsI currently have two IRAs with a major online brokerage that I would like to move into a self-directed IRA that will allow me to invest in real estate.
I am working with Guidant and they are telling me that I cannot move an IRA that is currently involved in 72t distributions. Guidant’s plan uses a trustee that will set up an LLC that gives you the ability to invest in various things. Guidant’s checkbook self-directed IRA planthe Self-Directed IRALLCallows you to just write a check to purchase real estate. It allows you to act as your own IRA broker/custodian out of the LLC.
Can anyone comment on the ability to do a trustee to trustee transfer of the two IRAs to accomplish my goal? Obviously I don’t want to incur penalties.
Thanks!2009-03-09 21:10, By: T72t, IP: [18.104.22.168]
L2: Moving IRA that currently has 72T distributionsYou can do a direct transfer of IRA accounts that are part of a 72t plan. However rigid and risky a 72t plan is considered, doing a transfer increases that risk and moving it into a self directed IRA compounds the risk several times more. Guidant seems to have no inclination to melda 72t IRA with real estate investments, probably knowing that the IRA must maintain the liquidity necessary to fund the exact 72t amount each year. Therefore, that portion is not wellsuited to a real estate purchase.
Bottom line is that you can make theIRA transfer, but it really is not a good idea to pursue. 2009-03-09 22:12, By: Alan S., IP: [22.214.171.124]