SEPP want to move partial to TSD IRA LLC; ? material change

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L1: SEPP want to move partial to TSD IRA LLC; ? material changeI started a SEPP ~ 1/5/2008 and won’t be 59.5 until 5/7/2016.
I have a flat amount taken each month and have not changed that amount.
I used age 52, single life expectancy of 32.3 years (my spouse is much older) and an interest rate of 0.75% (less than one percent). Not that the calculation means anything to this discussion.
I have six years on one month left. That is a about $240K.
Question (1)
I would like to create a self directed IRA under an LLC.
and move the assets NOT needed to fund the SEPP to a new account.
The new account could be returned to the same brokerage but as an LLC.
Would this be a “material change”?
Question (2)
If I moved (“excess assets”) to an IRA LLC and then to a ROTH LLC….would that be permissible?

The funds would not be commingled.
The SEPP would still flow from the original account.
It would be a Trustee Transfer.

Thanks for your thoughts. Great site.2010-04-06 22:15, By: Foxes, IP: []

L2: SEPP want to move partial to TSD IRA LLC; ? material changeBefore offering any thoughts on your question(s), please elaborate on exactly what you mean. What exactly do you mean by the term “LLC?” Normally it would be “Limited Liability Corporation” but in your post I’m not sure what you mean.IRA’s are for “Individuals” and not for “non-person entities.” So after you expand on your post we may be able to offer some ideas.Jim2010-04-07 14:49, By: Jim, IP: []

L2: SEPP want to move partial to TSD IRA LLC; ? material changeCan you do it? Probably. There are a variety of organizations that offer IRA LLCs.
Should you do it? Use extreme care. You would be doing a partial transfer which the IRS doesn’t appear to like. Start by reviewing the article here. You could be opening your self up to additional problems and IRS oversight. Also be real careful about engaging in any “prohibited transactions”.
Also remember that the assets remain SEPP assets and must remain SEPP assets until the SEPP plan ends.
Can you do a Roth conversion? Again, the answer is probably yes, but it also means that you would have to come up with the income tax due on the conversion from outside funds.
Your questions should really be directed to your personal tax advisor – they could probably give you a better answer based on your personal situation.

2010-04-07 15:10, By: Gfw, IP: []