Rollover Ira moved from one broker to another and 72t balance
L1: Rollover Ira moved from one broker to another and 72t balanceI rolled over a lump sum from my employers qualified retirement plan when I retired in December to a UBS broker. He opend two IRA’s. One with mutual funds and one with an Annuity. He moved from UBS to MS and I authorized him to move the accounts with him. The transfers are complete and I’m planning my income for for the remainder of this year and next year. I’ll be 58 in Nov. and would like to take a distributation starting in September this year..
My question is: Is the distributation based on my balance with UBS which I had in Dec. 2008, but is now closed, or is it based on my balance as of when I transferred over to MS? There is about a $20,000 higher balance at the transfer.
Can I take out a prorata amount between Sept. and Dec. or do I have to take out the full years amount?2009-05-18 10:37, By: George, IP: [18.104.22.168]
L2: Rollover Ira moved from one broker to another and 72t balanceIf you want to start a SEPP in September, use the balance for any date between receipt of the complete transfer and August 31st. Do not use the 12/08 balance. Also be sure not to take a distribution between the date of your initial balance and the first September SEPP distribution.
For 2009, you have a choice to taking out EITHER 100% of the annual amount or 33.33% which represents Sept through December interval.
Note that even though youwill have only 14 months to age 59.5 when your SEPP starts, yourplan must run for 60 months once you start it. Therefore, you probably do not have any other source of funds to get you to 59.5 withoutthe penalty, or you would have planned to use those other sources to avoid the 60 month commitment.2009-05-18 18:46, By: Alan S., IP: [22.214.171.124]
L2: Rollover Ira moved from one broker to another and 72t balanceToo bad that your broker didn’t advise you about the provision that would have allowed you to make distributions of any amounts at any time from your employer’s retirement plan, if your employer allowed it. You were > 55 when you separated from service. Also, you should have checked then to determine if there was any employer stock in the plan, in which case you could have used another provision related to NUA ( Net Unrealized Appreciated Employer Stock).
The broker may have been more interested in his commissions than your needs. If you had come to this website first, youmight have been better advised, and paid less taxes.2009-05-18 19:06, By: dlzallestaxes, IP: [126.96.36.199]
L3: Rollover Ira moved from one broker to another and 72t balanceThanks for the reply. I met with my broker yesterday and we both agreed to try and find a way not to start the SEPP. The qualified pension plan I had offered monthly payments, and had no company stock. I opted for the lump sum, since I didn’t like the annuity options they offered. I understood that I could have received the annuity payments without the penalty, but felt I could find a way to get to 59.5. I also had a 401K with the same company (A-B) and took a distributation from it without penalty when I rolled it into a different brokerage account. I think I’ll get a job for a year to supplement my wife’s income and let the funds grow, and then take some money without worrying about the 72-t rules.
Thanks for your great website.2009-05-19 08:49, By: George, IP: [188.8.131.52]