Reallocation to new custodian

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L1: Reallocation to new custodianA prompt answer to this question is greatly appreciated.
A withdrawal (12k) was made from Custodian A (account where SEPP established in 1999) and transfered to Custodian B January 2004. Within Custodian B 3 separate funds were chosen with amounts of 3k, 3k, & 6k respectively. The SEPP was not set up at this time at this new custodial account. In addition to the above amounts going into these accounts, 2 weeks later other IRA funds were transfered from Custodian C (non-SEPP) into these 3newly established accounts of Custodian B. Obviously this was done without knowledge of SEPP rules. Given the above scenario, what can be done (if anything) to “reverse” this scenario without incuring penalty? No distributions have yet been made for March 2004 (February distribution was made by previous custodian A) and the new custodian states they can set it up for this March distribution but there may already be a violation of SEPP ruling.
Can the original transferedamount (of the SEPP) be used to open a new account within this same custodian B where it is preferred? What can best “correct” this mess?2004-03-29 13:23, By: Starfortune, IP: [66.69.107.199]

L2: Reallocation to new custodianHello Starfortune:
I think of 2 or 3 solutions but before we can validate those solutions we need about 10 questions answered; e.g. all of the exact details. Please post again, or, if you are uncomfortable doing so, email me.
TheBadger
wjstecker@wispertel.net
2004-03-29 13:41, By: TheBadger, IP: [38.116.134.130]