Trustee to Trustee transfer for bond purchase.
L1: Trustee to Trustee transfer for bond purchase.I currently have account “A” on a existing SEPP with one broker. DOB is 1/12/59
I wish to purchase a private bond that is sold by another broker and can not be purchased through my account “A”.
I would like to set up a trustee to trustee transfer to account “B” with funds to purchase the bond.
Can I accomplish this and not “bust” my current account “A”.2013-02-09 22:46, By: johnnyg, IP: [220.127.116.11]
L2: Trustee to Trustee transfer for bond purchase.I suggest that you search this website to review the materials about “partial transfers” to see if this single investment is worth the exposure with the IRS in this area.
Also, look at the regulations that limit may limit you to ONE such transfer in each 12 month period (which is different from calendar year).2013-02-10 01:51, By: dlzallestaxes, IP: [18.104.22.168]
L3: Trustee to Trustee transfer for bond purchase.Thank you for the good information.2013-02-11 15:09, By: johnnyg, IP: [22.214.171.124]
L4: Trustee to Trustee transfer for bond purchase.Searching this site is good advice. However, let me try a short answer for your benefit.
The short aswer to your question about making a “partial transfer” will probably bust your plan. As you read the “FAQ’s” on this site your will find reference to the IRS busting a plan because of a “partial transfer” which you are talking about doing.
Full transfers from an existing IRA running a SEPP Plan to a new, EMPTY IRA account do not seem to be a problem. But the “partial transfer,” especially to an existing IRA which contains assets,has caused problems.
Jim F2013-02-11 16:00, By: Jim F, IP: [126.96.36.199]
L5: Trustee to Trustee transfer for bond purchase.Jim
Thanks for your response. I tried seaching this site but kept getting a error for the page so instead I went to the irsgov site hoping to find some information there.
What I’ve found is a trustee to trustee transfer and how to do it.
With regard to your comments, I am transferring 25k in assets into an empty IRA account for the sole purpose of purchasing a bond which will be held there in that IRA account. Due to the type of bond I cannot purchase it through my broker who holds my IRA accounts and I am attempting to use the T to T transfer to make this happen.
Do you think this will bust my existing IRA? Thanks in advance2013-02-11 16:16, By: johnnyg, IP: [188.8.131.52]
L6: Trustee to Trustee transfer for bond purchase.Yes, I think it will bust your plan because your are making a “partial transfer.”
There may be some more current information that I’m not aware of and if so hopefully Alan or GFW will add their comments.
Is it possible to transfer all assets from your current broker to the new broker? If so then you should have no problems with possibly busting your plan. You will have one IRA account in a brokerage account and then you can invest in whatever IRA-legal assets you wish.
Jim F2013-02-11 16:25, By: Jim F, IP: [184.108.40.206]
L7: Trustee to Trustee transfer for bond purchase.How much are you planning to transfer ? What is the fantastic interest rate that you are going to get ? Is it worth jeopardizing your SEPP 72-T plan, and exposing yourself to a 10% penalty on all of your cumulative distrib utions to date ?
Is it that fantastic that you would transfer all of the rest of your investments from your present broker just because he does not have this one investment ?2013-02-11 19:18, By: dlzallestaxes, IP: [220.127.116.11]
L8: Trustee to Trustee transfer for bond purchase.The investment doesn’t support the risk of busting the SEPP so I have shelved this.
Many thanks to you all for your insight. My SEPP’s continue along without disruption thanks to this web support. Be well all2013-02-11 20:35, By: johnnyg, IP: [18.104.22.168]