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L1: questionif I start a 72t and transfer my IRA to another broker midterm of the 72t say in 2nd year is that a problem? I plan on keeping the distribution the same.2017-02-16 14:19, By: bri, IP: [24.144.153.36]
L2: questionThis is not a problem because it is a full transfer of your plan. If you only transferred a portion of that IRA to another custodian (eg to purchase an IRA annuity) there could be a problem because the IRS has busted a couple plans in recent years for partial transfers.
The best way to do your full transfer is by direct trustee transfer either before any 72t distribution for the year has been taken OR after the full distribution has been taken. It would be ideal ifyou can time it to occur when there are no dividends yetto be paid when the first custodian held the shares but the payout will be done after the main transfer to the new custodian has been completed. That would require a supplemental transfer to be done to get all the funds to the new custodian, and there could be a rogue custodian or two that just issues a distribution check because they do not have the account any longer.
While having a single 1099R for a year from either the new custodian or old custodian is simple and clear to the IRS, having more than one does not bust the plan, it just increases the chance of a possible inquiry you would have to respond to and could force you to use up your one permitted indirect rollover per 12 month period.2017-02-16 17:21, By: Alan S, IP: [174.126.90.174]