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Transfer of portion of SEPP balance

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Bymtguy

L1: Transfer of portion of SEPP balanceI’m still a bit confused about whether aperson can do the following:
Mtguy has $800,000 in IRA (A) and is taking SEPP payments from the IRA (A)which conform to the code. Let’s say that amount is $50,000. Now he wants to transfer $400,000 to an alternate investment IRA (B), while taking continuing to take the $50,000 from IRA (A), and nothing from IRA (B). Is this considered a “material change”? Thanks in advance. -Mtguy2004-05-27 13:22, By: mtguy, IP: [207.170.227.73]

L2: 2 IRA””sNo. Just remember that all assets – regardless of where they are located – still belong to the SEPP.
As I stated a few postes below… “However, since neither Trustee/Custodian holds 100% of the assets, they may code the 1099 with a code other than ‘2’.
This really isn’t a problem as the IRS has a form that can be filed with your return claiming the exemption to the 10% penalty. Just keep a good paper trail.”2004-05-27 15:12, By: Gfw, IP: [172.16.1.71]

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