OK to Change IRA Custodian Midstream into a 72t?

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L1: OK to Change IRA Custodian Midstream into a 72t?Hi. I currently have an IRA with E*Trade. For about the past 12-15 months, I have had
$$ taken out of my account each month, using the calculations from the software I purchased
from this site. All is going well, although E*Trade requires that I file the correct forms/info with
the IRS to show/prove that I am using a SEPP (not a problem). Anyway, I am thinking about
transferring my IRA acocunt to another brokerage company. My intent and plan is to continue
taking the same amount of money out on the same day each month. I am planning to initiate
the transfer to the new company right after money is taken out in one month so I am assured the
transfer process will be complete and themoneyavailable to be taken out from the new brokerage company
the same day of the next month (in other words, not missing any payouts).I just am trying to verify
that changing brokerage companieswon”t have negative issues with the IRS? Thanks!!

2007-04-04 13:40, By: Scott in Utah, IP: [65.90.54.194]

L2: OK to Change IRA Custodian Midstream into a 72t?You will habve no problem changing where you have assets invested. Just remember, it is the annual amount, not the monthly amount, that you need to take from the plan to keep the SEPP intact.
You could very easily miss a monthly during this process – just make sure that at the end of the year, you have taken the annual amount.2007-04-04 15:32, By: Gfw, IP: [74.136.109.63]

L2: OK to Change IRA Custodian Midstream into a 72t?Scott,
I recommend you move the funds only by direct trustee transfer, not a rollover. It eliminates certain risks, eliminates a 1099R that you must report, and it preserves your ability to do a rollover if you need to in the next 12 months. For example, if you take out too much (or the custodian distributes too much) you will be able to roll it back within 60 days if you preserve the rollover “safety valve”.2007-04-04 21:50, By: Alan S., IP: [24.116.66.98]