Moving IRA with 72T
L1: Moving IRA with 72TI am 56 ( 11/14/58) and have 1.6 million in an IRA at Merrill Lynch from which I draw a 72t Sepp. I also have a smaller IRA there which is not tied to the Sepp. I would like to transfer the IRA’s to Vanguard. Will this move bust the 72t? I take the Sepp on Jan 1 of each year. I have received a 1099 yearly from ML. Vanguard has advised me not to make this move, but the advisor there is not very knowledgeable. How should this move be coded and do I need to file a 5329?
2015-11-03 13:14, By: rick, IP: [188.8.131.52]
L2: Moving IRA with 72TIf you plan to transfer your portfolio from ML to Vanguard, then you will have to speak with Vanguard Brokerage. If you plan to liquidate your ML portfolio, and transfer cash to Vanguard, and to invest in their mutual funds, then you should speak to their IRA/Retirement reps.
The Vanguard rep may be concerned about the stupid regulation involving multiple transfers in the same 12-month period. Consider transferring just the SEPP IRA, and leave the smaller account at ML until you are 59 1/2. You can change your investments at ML to Vanguard mutual funds without moving your accounts.2015-11-03 16:41, By: dlzallestaxes, IP: [184.108.40.206]
L3: Moving IRA with 72TTha Vanguard rep is concerned with an 2007 IRS ruling that went against ataxpayer. He did a partial transfer of an IRA and the IRS determined he had violated the rules and he was held liable for penalties, interest and taxes. We are leaving ML because of their fees, etc. Leaving the smaller IRA in Vanguard funds at ML would defeat the purpose of reducing expenses. Thanks for the input.2015-11-03 17:02, By: rick, IP: [220.127.116.11]
L4: Moving IRA with 72THow much is your smaller IRA ? How much are the ML fees on that account ?
What is the portfolio like — mutual funds, equities, fixed interest investments ?2015-11-03 20:57, By: DLZALLESTAXES, IP: [18.104.22.168]