Transfer 72t plan to another custodian and changed to RMD

L1: Transfer 72t plan to another custodian and changed to RMDI have had my 72t since 2001 and have either used amoritzation or annunization, I’m not sure which. In August the company that was making the distributions talked me into changing to RMD, whichI will need to keep for the rest of the plan distribution (2 1/2 years). I want to know if I can transfer the 72t to another custodian? I know that I have to continue the distribution. Also, do the recalulate the RMD each year by the value in the account if I am 57? Thank you.2009-11-06 13:49, By: D, IP: [147.126.161.143]
L2: Transfer 72t plan to another custodian and changed to RMDUssing the RMD method you recalculate each year based on your attained age.The rest of you qquestion can be found in the postchange to RMD below. 2009-11-06 13:55, By: Gfw, IP: [216.80.125.206]

L3: Transfer 72t plan to another custodian and changed to RMDI read the change to RMD, maybe I missed something. I didn’t see anything about transferring the 72t plan to another custodian. 2009-11-06 14:03, By: d, IP: [147.126.161.143]

L4: Transfer 72t plan to another custodian and changed to RMDIf you do a total transfer, it shouldn’t be a problem.If you need to takeany distributions yet this year, take them before the transfer. 2009-11-06 14:06, By: Gfw, IP: [216.80.125.206]

L5: Transfer 72t plan to another custodian and changed to RMDThanks, I receive a distribution depositaround the first of each month, so I will wait until the 2nd or 3rd of December to make the transfer. Will there be a problem if the new custodian doesn’t have the funds before the 1st of January to start making the distribution on Jan 1st, or do I just need to take the amount by the end of the year?2009-11-06 14:15, By: d, IP: [147.126.161.143]

L6: Transfer 72t plan to another custodian and changed to RMDNo, but make sure that any trailing dividends go from the original account to the new account. You could also take out the balance of your monthly distributions nowto getyour 2009full annual distributionand then do the transfer – that gives you lost of time and then re-start your distributions next year. 2009-11-06 15:02, By: Gfw, IP: [216.80.125.206]

L2: Transfer 72t plan to another custodian and changed to RMDD,In many 72t plans, it is often too late in the year for a recipient to change to RMD in August, since RMD often cuts total payments in half OR even less for the calendar year.. From what I have read on this site, the experts here have discouraged others from switching if it will end up with a hybrid of Amortization (or Annuit) and RMD taken for that calendar year.Some can make the switch earlier in the year, and justmake sure total withdrawn is equal to the new RMD amount, even if some was paid under old method in that year. For example (using arbitrary figures) with regard to what it sounds like you may have done,if you were taking $2k per month ($24K per year) in the past, and they had you start taking $800 per month in Aug upon this recommended switch to RMD, you would end up with $14k from Amort (or annuit) payments for 7 months, and another $4K from the 5 “partial year” RMD payments which adds to $18K on your 1099-R for 2009 , and that is not the $24K you took in the past, or the $9,600 (annual computation for 2009 RMD in this hypothetical) but somewhere in between. I will let the experts comment on your reply. If it is a problem with the way you have done it,you could just take the difference out (another $6,000 in this example) before 12/31/09 (the extra $1,200 per month for five months) to get the full year 2009 withdrawal back to $24K (using numbers from this example) to fix this year, and then start RMD in 2010 using 12/31/09 balance to compute. Just remember to recompute again each year.Let us know what payments you have taken in 2009, so they can check this out. KEN2009-11-09 00:38, By: Ken, IP: [71.192.120.143]

L3: Transfer 72t plan to another custodian and changed to RMDKEN,I have had a certain amount taken up through July 2009. Then in August they used the annuitzation and recalulation the distribution to a much lower amount. They told me its not the RMD method because I’m not 70 1/2. Will I still have a problem when the 1099-R is issued because they lower the calulation? Please advise as to what I should do.Thanks,D2009-11-09 14:42, By: d, IP: [147.126.161.143]

L4: Transfer 72t plan to another custodian and changed to RMDD,The method I am referring to is really called “Minimum Distribution method” as shown in the calculator on this site. You cannot change from Amortization to Annuitization. You can either recalculate each year under Annuitization or Amortization, or come up with a payment plan (under those methods) and keep it the same annaul amount for the entire SEPP, but you cannot alter that decision once you choose it. Under Minimum Distribution Method (whichpays the least) you have to recalculate usingnew balance and new ageeach year.The only option to changeAmortization or Annuitization methods (look at calculator and try it with your age and an estimate of your balance to see how they differ in payouts)is a one time change to “Minimum Distribution Method” (which I was calling a change to RMD). You need to be clear on what method you had before, and what they changed you to, and perhaps give us some figures for monthly payment before and after the change, as this does not sound correct. I am not an expert, but others are, and they will comment after you give us more info. KEN2009-11-09 15:55, By: Ken, IP: [71.192.120.143]

L5: Transfer 72t plan to another custodian and changed to RMDThank you for your help, you are right and I do have to take out the amount that I was having taken out prior to change. It was too late for the change for 2009. I do have more questions that I will be sending later.2009-11-24 17:44, By: d, IP: [147.126.161.143]