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Partial transfers

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ByAdvisor in Colorado

L1: Partial transfersHello,
I have a client that wants to split their current 72t plan between two B/D’s. The current B/D is telling me they can’t do it, and the new B/D is of course telling me it’s fine. Maybe an illustration is best:
Client has $200k in IRA1 at Broker1, curently under SEPP period (started Feb ’05).
He wants to split his IRA1 so heretains $100k in IRA1with Broker1, and subsequently $100k in IRA2 with Broker2.
As I understand it, there is no problem in moving to a new custodian all together, which would make me think that a partial transfer is ok as well, as long as he is not making contributions or distributions ofany sort from either account,and he continues on his SEPP plan and splits the payments between the 2 accounts.
Any input is greatly appreciated!
Thanks,
Advisor in Colorado2005-11-11 14:41, By: Advisor in Colorado, IP: [12.154.39.254]

L2: Partial transfersPartial transfers are no different than total transfers – as long as the initial SEPP assets remain assets of the SEPP, they can be invested with any custodian.
With that said, be ready tto file form 5329 to claim the exemption because neither custodian will probably give you a code of ‘2’ on the 1099. 2005-11-11 14:50, By: Gfw, IP: [172.16.1.73]

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