L1: separate accountsIf I rollover my qualified assets to one IRA and my 401K assets to a separateIRA account, am I permitted to72t only one of these IRA accounts and is my calculation based on all qualified assets of all accounts?2009-03-10 00:04, By: BAS, IP: [126.96.36.199]
L2: separate accountsYou can choose to only include one of the IRAs for your plan, and you must then use the balance for that one only and withdraw from that one only. The other one can be maintained for emergencies. You would pay the penalty for withdrawalsfrom the non 72t account, but your 72t would not be busted.
You can also choose to include the balance of both accounts for your 72t and take the distributions in any combination from the two IRA accounts. In that case you have no separate IRA for emergency distributions. You should document your calculations when you start your plan and make a copy of the statements that apply. If you use both IRAs, the balance used must be for the same date.
In the event that one of the IRAs produces too little to live on, and using both is too high, then you can do a direct trustee transfer between them BEFORE you set up your 72t such that the amount in the IRA you choose for the 72t will produce the distribution amount you need.
2009-03-10 03:44, By: Alan S., IP: [188.8.131.52]