multiple 72t

L1: multiple 72ti will be49 yearsold this month and will besetting an sepp plan for 2013. i have two iras with two different retirement companies. can i set up two different 72t if i wanted
also im i best cobining both iras together with one company2012-12-06 03:22, By: fishes92, IP: [108.206.252.107]

L2: multiple 72tAssuming that you need the close to total balance of both IRAs to generate the annual distribution you need, the best approach for a long term SEPP of 10.5 years would be to transfer 90% of the balance into one account and use that for the SEPP and leave the other 10% in the second IRA for emergency needs.
While it is rare to have two simultaneous independent SEPP plans from two different accounts, it is allowed if you wish to do that. It’s a hedge that if you bust one plan the other is not affected and can continue. It would take some planning how you split the balance eg 50-50, 60-40, 80-20 etc. For a long term plan like yours, there is bound to be unanticipated occurences, and most typically it would be to run short of funds and have to bust at least one plan by taking out extra amounts.
It is also allowed to have one SEPP plan using two different IRA accounts. Under this approach, you do one calculation using the total balance of both accounts, and you can then take distributions in any combination you wish between the two.
Under any of the above options that involve use of more than one IRA account in either one plan or two separate and independent plans, the IRS is not used to seeing many of these. Therefore, you would need to keep very thorough documentation of your calculations, because you might well need them. You would also be filing Form 5329 to claim the SEPP exception for one or both 1099R forms you would receive.
It is somewhat beneficial to have the IRAs held at one custodian because that custodian can understand your total arrangement and perhaps provide more support to your plan, but in the end your plan is between you and the IRS.
2012-12-06 04:43, By: Alan S, IP: [24.116.67.233]

L2: multiple 72tAlan gave great advice as always.
One point that you may want to keep in mind. If you start 2 SEPP plans on the same date with the same custodian, the IRS at a later date could always argue that it was all one plan.
Personally, I wouldn’t do it – If I were planning on having 2 SEPP plans, I would stagger the start dates so that they may not even have the same interest rate – proof that they really are two separate plans.2012-12-06 14:08, By: Gfw, IP: [205.178.67.189]