once an account is violated

L1: once an account is violated Once someone violates an IRA account under 72t, is that account no longer good? Do you have to transfer it into another account and then restart it? Another thing I wanted to know is, if you finish the rest of the payments for the year after you have violated the account, in the following year will the 10% penalties stop on the income payments?
Any help would be appreciated.
2003-01-23 12:15, By: emerald, IP: [127.0.0.1]

L2: once an account is violated Hello emerald:
By saying “violated” I am presuming that the account owner as committed a “modification” of the SEPP distribution stream such that the 10% surtax is now due. I would then “fess up” and pay the 10% surtax plus interest. After that, I see no need to physically move the remaining corpus to another account. Further, there is significant precedence that the account holder can restart the next year with a new SEPP plan and “detach” the new sream from the old “violated” stream. The trigger event is the payment of the surtax.
TheBadger
2003-01-23 12:28, By: TheBadger, IP: [127.0.0.1]