Multiple IRA Balance Dates + CD Maturity + Publication
L1: Multiple IRA Balance Dates + CD Maturity + Publication
This is a great site. Thank you for all the information.
I have three IRA’s I will be using in establishing a SEPP. Can I use different balance dates for each of them to determine the equal payments?
For example: I have one IRA (5 yr CD) which only has an annual statement (latest one – 12/31/11). I have two other IRAs (stocks/bonds,etc..) that have monthly statements. If I take my first annual distribution on 3/15/12, can I use the 12/31/11 statement
for the CD and the 2/29/12 statements for the other 2 IRAs in determining the basis for the SEPP? Or, must all the statement dates be the same (in this case they would have to be 12/31/11)?
Next question: I understand I cannot transfer an IRA in a SEPP. But, what happens when my 5 yr CD comes due? I assume the money still has to sit there under the same account number – perhaps earning next to nothing…. Or, is there an alternative?
Lastly, I see that the publication available on this site was published in 2004. Is it still relevant?
2012-02-07 18:07, By: 72tMan, IP: [18.104.22.168]
L2: Multiple IRA Balance Dates + CD Maturity + Publication
1. Each SEPP 72-T PLAN must have the same account balance date.
2. You can set up 2 or 3 separate SEPP 72-T PLANS, each with different accounts, different balance dates, and different starting dates, which gives you tremendous flexibility re distribution amounts the first calendar year.
3. When a CD matures, you would be doing a “complete transfer”, not a “partiual transfer” of that account’s balance.
4. The publication is a thorough narrative about SEPP 72-T plans, and nuances. Any changes since then are throughout this website, but the BASICS remain the same.
2012-02-07 18:41, By: dlzallestaxes, IP: [22.214.171.124]