Question about changing banks if you have a 72T Plan

L1: Question about changing banks if you have a 72T PlanI have 2 IRA’s with my bank. The first one is set up for college tuition and the bank automatically pays the school so I’m not penalized.
The other acct. is set up as a 72 T. I will be 55 (8/29/61)this year so have a ways to go until 59 1/2. My question is can I change banks and will the 72T transfer over to the bank w/no penalty?2016-01-13 01:00, By: lpassman, IP: [69.129.9.118]

L2: Question about changing banks if you have a 72T PlanYes, you can do a full transfer of the 72t IRA account to another IRA custodian. The only penalty would be a bank early redemption penalty if applicable or other bank (not IRS) fee. I strongly urge you to move the account by direct trustee transfer which is non reportable, as opposed to an indirect rollover. You are only allowed one rollover for all your IRA accounts now, and when you have a 72t plan you should save that rollover for an emergency. It is also an advantage not having to report a rollover because you would be putting a much larger amount on line 15a than your 72t amount and that could attract IRS attention, even though that is allowed.
If you are using CDs, you need to set them up correctly in order to have the liquidity to take your 72t distribution without incurring an early withdrawal penalty on your CD. But you have probably figured that out by now.
Whether you transfer the other IRA account or not is immaterial to your 72t plan, but of course you cannot move them both by indirect rollover as that would breach the one rollover limitation.
2016-01-13 16:16, By: Alan S, IP: [160.3.87.235]