Trustee to Trustee Transfer within SEPP accounts

L1: Trustee to Trustee Transfer within SEPP accountsI have a client that set up a SEPP several years ago. She needed maximum $ so we ended up using 100% of her IRA rollover to calculate the SEPP. The funds are in several different accounts with different custodians but the withdraw is only coming from one. In order to reallocate her assets, we want to transfer some of the funds held in one account into the account that she is taking the withdraw from. I know you cannot increase account balances with new monies; however, since this is coming from an account that is already included in the SEPP calculation, can this be done or will this trigger some type of red flag making it appear that new monies have been added to an existing SEPP plan? Thanks for the help.2006-09-26 15:21, By: CAN, IP: [69.250.130.192]
L2: Trustee to Trustee Transfer within SEPP accountsThis is OK as long as the original documentation is clear that all these account are part of the SEPP universe and the initial account balance included all of them. However, note that this transfer might affect the distribution coding on the particular account and might trigger the need to claim the exemption on Form 5329.2006-09-26 21:59, By: Alan S., IP: [24.116.68.91]