partial transfer

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L1: partial transferI have two clients with assets in Resource Trust accounts that have participated in the SEPP program. I want to move their Inland Reit and EIA out and position the remainder of the assets in my own managed account platform. Is there any possible way to do this? I have heard that you can”t breakup accounts like this if they”re already participating in SEPP. Thanks.2006-08-23 13:57, By: MMM, IP: [216.100.203.226]
L2: partial transferI assume your B/D doesn”t have an agreement w/ RTC. Can you get a “one time” agreement to leave the REIT and EIA with RTC and then move the other assets to your managed platform? Probably not. In this case try to send the REIT and EIA back to the sponsor custodian to hold “direct,” and then move the other assets to your managed platform. Can you reinvest the REIT quarterly dividends or do they have to be paid out? Hopefully reinvestment is an option, otherwise you will have a management nightmare having to account for these distributions along with the other distributions to satisfy the annual SEPP distributions without exceeding or under distributing. The EIA can just sit there and accumulate. The client will have to file IRS Form 5329? since you are not going to get a good “Code 2” on Form 1099-R.
Can you split it up? Yes. Is it easy to work with? No.
Good luck.
Jim2006-08-23 14:21, By: Jim, IP: [70.184.2.72]