L1: Transfer 72TI am 52 and will be 53 in January of 2019 I took early retirement in June and have had two withdrawals from my 72T program that my fanatical advisor help set up. I am thinking of transferring it to some firm such as Vanguard due to the 1.25 percent (or more) my advisor and NFS Securities is charging me how would I go about doing that.2017-10-04 19:00, By: Ski1, IP: [22.214.171.124]
L2: Transfer 72TOpen the IRA at Vanguard and provide them with the info on your other account. Vanguard can then order the transfer directly from that IRA custodian. This would be a non reportable trustee to trustee transfer of your entire IRA balance for the 72t account.
Then you must be sure that you have withdrawn the correct amount for 2017. You have two choices. You can either distribute a pro rated amount starting with the month of your first 72t distribution or the full annual amount. For example, if your first distribution was in July, you can distribute either 50% of the annual amount or the full annual amount. If the amount you have already distributed does not total to either of those amounts, then you must take out the additional amount you need. It would be preferable if you could complete the 2017 annual amount from the current custodian as you would then only get one 1099R form and things would be clearer for the IRS. From 2018 to the end of your plan you would get distributions from Vanguard. You will have to file a 5329 to claim the penalty exception on all these distributions if the 1099R is coded 1 in Box 7.
Hopefully, the calculation to determine the annual distribution was done correctly and the distribution will be enough each year for the next 7 years.2017-10-04 19:55, By: Alan S, IP: [126.96.36.199]
L3: Transfer 72TSo I guess at this point next year I should hire a tax account to make sure funds are distributed appropriately after the funds are transferred yes I am sure my finical advisor will not be happy but I cannot justify paying 1.25%t when I am only trying not to touch my principle on the one IRA the other IRA is for growth. Thank you for any and all input as I should have done more research before I pulled the trigger on the earlier retirement but after working for GTE/Verizon/Frontier Communications I thought it may be in the best interest to take the money and invest and not wait till Chapter 11 comes.2017-10-04 23:49, By: ski1, IP: [188.8.131.52]
L3: Transfer 72TI currently have taxes taken out per month will that remain the same when Vanguard takes over the IRA that I am drawing my monthly amount from, it was calculated correctly and If I decide to make a one time change to the RMD would Vanguard supply that form.2017-10-05 14:46, By: ski, IP: [184.108.40.206]