Transferring IRA(72T) To Another IRA(72T)

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L1: Transferring IRA(72T) To Another IRA(72T) I have been taking monthly withdrawals from my IRA for the past four years frombroker A. I would like to transfer this account to another broker B. My question is; can I transfer to another broker and continue my monthly withdrawals to satisfy my last year of thefive yearrequirement and notincur a 10% penalty?
I would also like to know if the new broker would have to do anything special in setting up the account?
The IRS person I spoke to wasn’t completly sure, but did not see why it would be a problem. They will investigate and get back to me in 15 days. Also, she recommended this site which seems pretty good. Thanking anyonewho can clear this question in advance.2005-02-02 14:56, By: JohnB, IP: [172.130.195.244]

L2: Transferring IRA(72T) To Another IRA(72T) Changing brokers should have no impact on your SEPP. With that said, in the year of the transfer, neither will probably code your 1099 with a ”2” somerely be prepared to file form 5329 with your 1040. I”m also assuming that at the end of the 5-years you will also be over age 59.5. Good luck and just keep a good paper trail!
Nice to hear that the IRS continues to sendreferrals :~}2005-02-02 15:12, By: Gfw, IP: [172.16.1.71]

L2: Transferring IRA(72T) To Another IRA(72T) Hi John.
The short answer to your first question is yes, you can transfer from Broker A to Broker B. Now for the longer answer. Be sure to document everything; when the assets left Broker A and when they arrived at Broker B; when Broker B made your first distribution after the transfer; how much each broker distributed in the year of the move (assuming it will be 2005); and be sure the total distributed by each equals the correct amount you should get for the year … same amount you got last year. I assume you are or will have satisfied the age 59 1/2 rule by the time you satisfy the 5-year rule. If not, don’t forget this little detail.
The new broker / custodian should be familiar with SEPP / 72(t) procedures. Be sure to notify them what you are doing. When you complete their paperwork, there should be a place to indicate whyyou are makingthe distributions.
Become familiar with IRS Form 5329, exceptions for early withdrawals.
Irecommendhaving a conversation with your CPA or tax preparer to let them know what you are doing, and get some advice from them early. Remember, they have to complete the tax forms next year for this year when you make the move, and it would be best to have a workable game plan instead of jumping through hoops while you’re trying to get the forms completed before April 15, 2006.
Finally, don’t hold your breath for 15 days waiting for a response from the IRS. TheBadger can better comment on this item.
Good luck.
Jim2005-02-02 15:22, By: Jim, IP: [70.184.1.35]