Multiple IRA Distributions

L1: Multiple IRA DistributionsThis is just a follow-up email to the one below on 3/11/04. Is there anything special I should do if I take 72(t) distributions from multiple IRA’s at different custodians.
Example: I have 1,430,000 in total IRA money.
I have $400k at a bank that I want to 72(t), I have $400k at a money manager (separate custodian) I want to 72(t), and I have $400k in mutual funds (also separate custodian) somwhere else I want to 72(t).
I am leaving $230k in another separate IRA to just keep deferring until later. As long as I do not take more than the allowable amount from each IRA that I am 72(t)’ing and maintain a one-to-one relationship with each 72(t), this is ok correct?
Thanks! JAG
OLD EMAILWith respect to 72(t) distributions from an IRA before age 59 1/2.
Can I break up an IRA into different account numbers and do 72t distributions on different amounts at different times? Keeping in mind that once I begin a 72t distribution on a particular IRA account, I do not change “that” payment stream.Example:Let’s say I have a lump sum pension account that I am rolling into an IRA. The total is $1,400,000. I am 51 and my wife is 49. Can I take a 72t distribution based on say $400,000 if I put it into a separate IRA with a different account number? I would like to let the other $1,000,000 sit for a few years.If I want to, may I later (say 3 years later) break off another $300,000 to a separate account number and do another 72t on that “bucket?” I would not change the payment from the first 72t ($400k) and I would leave the remaining $700,000 alone to continue deferring.It is possible to perform multiple 72t distributions at different times, so long as they are in separate IRA accounts with different account numbers correct?Thanks!Sincerely,JAG 2004-04-12 19:01, By: JAG, IP: [172.175.200.96]

L2: Multiple IRA DistributionsI think that if you take the time to check your prevous post, The Badger gave you a very good answer.2004-04-12 19:33, By: Gfw, IP: [12.221.34.192]

L2: Multiple IRA DistributionsThanks. I am getting incorrect info from the bank. They are telling me that I have to take the 72(t) distribution based on the whole $1.43M and can’t defer a portion of it. Any idea of where I can find some info to clarify this to them? I’ll do this right before I pull my money from them:) 🙂
JAG2004-04-12 19:47, By: JAG, IP: [172.158.86.19]

L2: Multiple IRA DistributionsOver the years there have been a variety of PLRs that have allowed splitting of an IRA account into multiple pieces and only using part to fund a SEPP. Check out our FAQ and ask your tax advisor for a copy of Let. Rul. 200309028. A little summary might read as… The taxpayer who requested the ruling had received a large payout from a qualified plan in 2000, which he rolled over to IRA X.۝ A few months later he created IRA Y۝ (presumably tailored to the size he needed for a particular payout amount) with a rollover from IRA X, and began a 72(t) payout in October, 2000 from IRA Y. In March, 2001, the IRS issued a private letter ruling confirming that the payout was in compliance with approved procedures.’2004-04-12 20:00, By: Gfw, IP: [12.221.34.192]

L2: Multiple IRA DistributionsJAG
I have had many clients tell me “the people at the bank said …” and it was just totally wrong. To make matters worse, they keep changing people so there is no consistency. My suggestion is to move the money from the bank to a custodian with stability and knowledge of 72(t) procedures. I would predict that if you are going to stay with the bank, then the bank is going to give you the biggest problems over the years.
Good luck.
Jim2004-04-13 10:27, By: Jim, IP: [68.1.147.61]