Transfered assets under 72T

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L1: Transfered assets under 72TMy husband set up a 72T on his retirement IRA at age 51. The IRA was with Franklin Templeton funds and we received a monthly distribution deposited directly to our bank account.We have moved the funds to Fidelity investments and have not received the same distribution. Fidelity advised us that this would not be a problem, that we should just calculate what we would have received for the remainder of this year, and take it as a one lump sum distribution.We know the amount that was distributed for the 1st 8 months of the year, so we are going to calculate the amount which would have been distribution had we left the funds with Franklin. We will then deduct the amount we have already received and apply to have the remainder distributed in a lump sum.Fidelity advisers do not think this will create a problem with the IRS, are they right?2008-10-08 15:30, By: nicki, IP: []
L2: Transfered assets under 72THello Nicki:Short Answer — YES.Longer Answer —- I would think that the monthly distribution was fixed with Templeton. Therefore mutliply by 4 and tell Fidelity to distribute. As an aside, never, never sign-up with Fidelity for monthly or quarterly withdrawals; instead handle each and every one of your withdrawals [email protected] 15:44, By: thebadger, IP: []

L2: Transfered assets under 72THopefully, the funds were moved by direct rollover which doesNOT count as a rollover with respect to the one rollover per 12 month limit.If this was done by indirect rollover instead, you may not do another rollover from the Fidelity account for 12 months from the date of distribution from Franklin. Preserving the ability to do a rollover can provide a safety valve in case you happen to take out too much or Fidelity makes an error, as you could otherwise roll the excess amount back into the IRA. If you did an indirect rollover, you must be doubly careful to get your math exactly right and be sure Fidelity clearly understands what you need done.Finally, the transfer will probably result in the need to file Form 5329 to claim the 72t exception because you probably will not get both 1099R forms with the exception code.2008-10-08 20:30, By: alan+s., IP: []