Set up new IRA in existing SEPP universe?

L1: Set up new IRA in existing SEPP universe?If I define my SEPP universe as two IRA”s now, and down the road a year or two need to set up a third IRA to hold a new investment product, is that OK? Of course, I would sell some of the assets in the other two IRA”s to fund the new one…no “new” money would be added to my SEPP plan. I suggested setting up a third IRANOW to hold my money market account as a placeholder for any future need, but my custodian said we could transfer funds within the SEPP universe to fund the new IRA. (the third IRA might be required if the “new” investment product is a managed portfolio, which must be held in an account by itself). This is simply trying to allow for future flexibility.
Thanks!
2006-10-24 09:48, By: vaboy, IP: [69.170.54.170]

L2: Set up new IRA in existing SEPP universe?Go with the custodian”s suggestion. You can sell or exchange assets within the SEPP universe and even move them into a third IRA that is part of the same universe.
If you set up the third IRA now and it is outside the SEPP universe, then it can never become part of your current SEPP Plan. You could establish a new SEPP Plan with the third IRA, but it can”t be the source for your managed account segment of the original SEPP universe.
Jim2006-10-24 10:01, By: Jim, IP: [70.184.2.72]

L2: Set up new IRA in existing SEPP universe?Thanks, Jim. To clarify, I just wanted to be sure a possible third IRA did not need to be defined when I set up the SEPP plan in the first place. As long as I can open it within the SEPP universe later, using SEPP assets, then that”s fine.
On the money market I was talking about, that is a MM that will be in my SEPP universe anyway to fund my disbursements. It currently resides in an IRA that does not hold managed assets and is one of the two IRA”s I will be using to set up my SEPP. I was just going to move it into a third IRA and include it in the SEPP now, if it was a problem adding it later.
I knew I could move money between the IRA”s in the SEPP…I just wasn”t sure if I could set up a new IRA within the SEPP if I needed to later.2006-10-24 11:17, By: vaboy, IP: [69.170.54.170]

L2: Set up new IRA in existing SEPP universe?Thanks for the clarification to your original post. Based on all of this information I would say you are “good to go” with your SEPP universe concept … from an IRS-acceptable structure point of view. Of course, you will probablybe filing IRS Form 5329 each year as part of your tax return.
However, from a planning and management approach, why are you creating such a complicated, many-moving-parts structure? Hopefully you have good reasons for taking this approach. Help me out by telling me what type of investments you are comtemplating using for your SEPP universe? Are you using brokerage account(s) with mutual funds, ETF”s or individual stock and bonds, or are you using different fund families with all fund assets held at the fund companies? I understand the managed account having to be separate and with it”s own account number, but I”m wondering why you can”t do some form of consolidation with your assets. The more complicated the structure the more likely of problems like IRS questions and maybe even a goof leading to a busted plan.
Thanks.
Jim2006-10-24 13:51, By: Jim, IP: [70.184.2.72]

L2: Set up new IRA in existing SEPP universe?Jim, I prepared a detailed reply to your last post, but had lost my connection when I went to post it and apparently lost it. I”ll try again.
Good news on the Form 5329…my custodian tells me they report SEPP distributions with Box 2 checked on the 1099-R. That should eliminate potential questions when I file my taxes.
I don”t think I have too many moving parts in my SEPP. I need two IRA”s because one is a managed product that must have it”s own account in their system. The other just holds a mutual fund of their design made up of 50 stocks. There are no other fees associated with it, so I also have a money market account that I use to collect dividends and some profits I have taken. I just want to maintain the flexibility to chose where I draw my distributions from, hence my original question….if my investment company comes out with a new, managed acct type product down the road, could I set up a new IRA within the SEPP to hold it (using funds from selling some of the other assests in the SEPP).
Thanks for your interest in my situation!
2006-10-24 17:53, By: vaboy, IP: [69.170.54.170]

L2: Set up new IRA in existing SEPP universe?Very good. It sounds like your plan is falling into place and should work quite well for you.
Good luck.
Jim2006-10-24 18:02, By: Jim, IP: [70.184.2.72]

L2: November – 5.65%I,m starting to have a touch of heartburn. My future, Plan A was to 72t at the end of 2007 but will need a 5% minimum to do so. Not having a clue as to what drives the rates, what would be your best guess as to the rate, say November 2007.Hadenough2006-10-24 09:21, By: hadenough, IP: [70.179.156.170]

L2: November – 5.65%> what would be your best guess as to the rate, say November 2007
I”m not one of the experts that responds in this forum so take my coments with that caveat. I think trying to predict interest rates a year out is an extremely difficult proposition. I would guess that even Ben Bernanke of the Federal Reserve would be reluctant to predict interest rates one year out. There are too many variables that no one controls that can affect what the interest rates will be in the future (outcome and developmentsfrom November elections in the US, international stability and political status, etc. are items that come to mind.)2006-10-24 09:37, By: John, IP: [71.208.231.251]

L2: November – 5.65%Since the “best guess” at the next rate is only good for one month forward, trying to guess the rate a year in advance (November, 2007) is beyond the scope of reality.
Jim2006-10-24 09:39, By: Jim, IP: [70.184.2.72]

L2: November – 5.65%When you have ” had enough “, you start grasping for miracles, like a 5% rate for November 2007. Keeping all extremities crossed and thanks for responding to such a far out.hadenough2006-10-24 15:24, By: hadenough, IP: [70.179.156.170]