ROTH IRA & 72T
L1: ROTH IRA & 72T
I am 56 years old and separated from my employer (involuntary) this year. IrecentlyhadFidelitydoarolloverofmy401KtoaFidelity ROTH IRA.IsitpossibleformetousetheROTHfora72TinJanuary2019?
2018-12-15 01:37, By: fljmv, IP: [18.104.22.168]
L2: ROTH IRA & 72T
I don’t understand why you did what you said you did.
1. If you could have left your 401-K with your former employer, and if the custodian/administrator allowed periodic partial distributions, that would have eliminated the need for a SEPP 72-T.
2. If there was company stock in the 401-K, usually from employer matching contributions, and if it had appreciated significantly, then you should have been told by the employer about the NUA (Net Unrealized Appreciation) provision of the tax code.
3. If you converted your tax-deferred 401-K into a ROTH IRA, it all became TAXABLE !!! If so, you should immediately reverse the ROTH CONVERSION before 12/31/2018 to avoid a major tax liability.
4. If the Fidelity rep recommended the conversion of a 401-K into a ROTH IRA, you should talk to an attorney.
2018-12-15 04:37, By: dlzallestaxes, IP: [22.214.171.124]
L3: ROTH IRA & 72T
2018-12-15 13:22, By: fljmv, IP: [126.96.36.199]
L4: ROTH IRA & 72T
You should read more on this site so that you understand everything about a SEPP 72-T. You don’t “move” an IRA into a SEPP. You merely indicate in your own internal records that you are using the IRA as your SEPP “universe”. You should use the “reverse calculator” on this site to determine how much of your IRA you need to include in the “SEPP Universe”. If you need, or want, the maximum that your IRA would provide, then it is not necessary to bother with the reverse calculator.
We usually recommend that you keep some portion of the IRA for any future emergency, unless you need all of it for the SEPP distributions for the amount that you need. That way you might avoid busting the plan before it reaches its end.
2018-12-15 17:00, By: dlzallestaxes, IP: [188.8.131.52]