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Trustee-trustee transfer

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ByCarolyn

L1: Trustee-trustee transferI have a client who wishes to transfer his IRA that was set up for SEPPs in April 2002. He will complete the five years end of March 2007. The out-going custodian says:”Pursuant to IRS Rev Ruling 2002-62 and IRS Notice 2004-15, a transfer of funds in an account currently taking SEPPs from one vendor to another may be treated by the IRS as a modification of payments and result in disqualification of the program.”
I find it hard to believe the IRS would force a taxpaper to stay in an area that exposes them to risk and can not move the account to something more prudent.
We are requesting a partial transfer so one year”s worth willremain where it is and transferring the balance. The account titles will be the same.
Based on what I have read, it appears the 2002-62 is not against a transfer of this kind.
What would you recommend?

2007-01-14 16:27, By: Carolyn, IP: [68.89.46.176]

L2: Trustee-trustee transferhttp://72t.net/Articles/ArticleShow.aspx?WA=41
Carolyn,
I think the above article by Bill Stecker, copied from this site will explain in detail the reasons for the confusion regarding your transfer. I attempted to capsulize this on Ed Slott”s site. 2007-01-14 16:55, By: Alan S., IP: [24.116.66.98]

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