Mulitple IRA accounts

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L1: Mulitple IRA accountsClient has a 72t IRA and a separate IRA (B)account. May client do a ROTH conversion from separate IRA Baccount without busting his 72t? May client take an additional distribution from IRA B without busting his 72t? May the additional distribution avoid the excise tax up to the amount of medical expenses above 7.5% AGI limit? Any IRS references for these?2009-11-17 23:54, By: Java, IP: []
L2: Mulitple IRA accounts
As long as the two IRAs have different account numbers and the “B” IRA was not used to calculate his 72t distributions, then yes, he can do a Roth conversion (income limits permitting, of course) on the B IRA. He can also take distributions from the B IRA but will have to pay income taxes and the 10% early withdrawal penalty tax on any untaxed money distributed from the B account.

As to the 7.5% of AGI medical expenses, I suspect that this will work too but will defer to Dlz or some other tax expert who frequents this site.

As to the IRA references, IRS Pub. 590 should contain the references you need.

2009-11-18 07:03, By: Ed_B, IP: []