Two IRA Accounts Using Uniform Lifetime Table

L1: Two IRA Accounts Using Uniform Lifetime TableI took my first of five distributions on January in one IRA account. I want to move some of my money into another IRA account to ensure both account balancesare under the $250,000 FDIC insurance coverage. On January 2011, my calculation will be the balance of BOTH IRA accounts divided by 40.7. Is this dividing of funds into two IRAs for FDIC insurance purposes allow my to combine the two IRA balances for the Uniform Lifetime Table 40.7 (age 56) to continue to give me a higher distribution of the combined IRA account balances?Thank you for your response,Dougbert2010-04-08 02:07, By: Dougbert, IP: [68.5.10.91]
L2: Two IRA Accounts Using Uniform Lifetime TableStart by reading the article HERE. What you are talking about is a partial transfer – after reading the article, you can decide whether you want to assume the risk.2010-04-08 23:08, By: Gfw, IP: [24.148.10.164]

L2: Two IRA Accounts Using Uniform Lifetime TableThis might just be the way you worded your post, but the 250,000 FDIC limit applies per bank, not per IRA account. So if you had several IRA accounts with the same bank, your total insured limit does not increase above 250,000. But you probably meant to use different banks.I might also ask why you are using the MD method when it yields so much less than a fixed dollar method? If you just started your plan, you should still be able to fix that and use a fixed dollar method, but you CANNOT partition off dollars into another IRA account that is NOT part of your plan after taking your first 72t distribution from the original IRA, which you did in January.Finally, why 5 distributions in the same month?2010-04-09 03:03, By: Alan S., IP: [24.116.165.60]

L3: Two IRA Accounts Using Uniform Lifetime TableAllen and Group,I currently have an IRA account in Wells Fargo Investments. It is a cash sweep that is FDIC insured to $250,000. I have $125,000 at risk. I want to open an IRA account in Wells Fargo Bank. I am told that each IRA will be protected to $250,000 because Wells Fargo Investments and Wells Fargo Bank are two seperate intities under the Wells Fargo nameplate? Does this pass the “laugh test.”Regarding distribution amounts, I was directed to use this method by my accountant, because my wife is 5 years older than me. I take my distributions on January of 2010, 2011, 2012, 2013, and 2014 (age 60).I am told by Wells Fargo Investments that I can buy a brokered CD through them under the existing account numbers, but the interest rates are criminal! I can believe that IRS would enforce regulations that would put retirees life savings at risk in this economic environment.Thank you for all your experience and help.Dougbert2010-04-09 03:36, By: Dougbert, IP: [68.5.10.91]

L4: Two IRA Accounts Using Uniform Lifetime TableI am told by Wells Fargo Investments that I can buy a brokered CD through them under the existing account numbers, but the interest rates are criminal! Before taking any action to make changes, considerthe following about “brokered CD’s” to fund you IRA. Unlike bank issued CD’s which have a fixed interest rate for a specific period and the principle is not reduced due to market conditions, the “brokered CD” can be affected by market conditions. So the value of your “brokered CD” may go up or down when you sell it, unless you keep it to maturity and they guarantee the principle.I can believe that IRS would enforce regulations that would put retirees life savings at risk in this economic environment.The IRS enforces tax law and is not an “investment advisor.” Investment choices are left up to the investorexcept for prohibited investments like life insurance and collectibles.Jim2010-04-09 16:30, By: Jim, IP: [70.167.81.119]

L5: Two IRA Accounts Using Uniform Lifetime TableJim,It seems the only safe investment is T-Bills? If I buy brokered CDs, they will be 6 months or less so I have the ability to make moves if interest rates raise.If I added my wife’s name to my Wells Trade IRA, would that change the 72T plan and invoke a 10% penalty? If it is a joint account, am I not FDIC insured to $500,000?Thank you for your experience.Dougbert2010-04-10 01:20, By: dougbert, IP: [68.5.10.91]

L6: Two IRA Accounts Using Uniform Lifetime TableYou can’t add anyone else’s name to an IRA account. IRA stands for “Individual Retirement Account” and CDs in an IRA are FDIC insured for 250,000 per bank.You can call the FDIC to find out if the two Wells entities are considered separate banks for insurance purposes. They might be. Would that solve your your insurance limit problem?2010-04-10 01:58, By: Alan S., IP: [24.116.165.60]

L7: Two IRA Accounts Using Uniform Lifetime TableIf I buy brokered CDs, they will be 6 months or less so I have the ability to make moves if interest rates raise.”Brokered CD’s” have longer maturities than 6-months so I don’t think you are getting the full story on them. Don’t think for a minute I’m endorsing this type of CD, just adding a comment.What do you mean by the term “Wells trade IRA?” Is this an IRA held in a brokerage account platform?Like Alan said, your IRA is yours and your wife’s IRA is hers, and never the twain shall meet … except should one of your die then the survivor has the option of “treating the IRA like their own” among other options.Jim2010-04-10 19:00, By: Jim, IP: [70.167.81.119]

L8: Two IRA Accounts Using Uniform Lifetime TableJim and Allan,My onlyobjective is FDIC or Governmentprotection of my small little nest egg. I have an Well Fargo Investments individually managed IRABrokerage account. This allows me the freedom to buy index funds (SPDRs, etc), stocks, bonds, and brokerage CDs. A new listing of banks who are FDIC insured (and pre-screened?)are offered everyTuesday morning from Well Fargo Investments.Examples of these banks include; The Bank of China New York, Bank of India, New York, etc. I am concerned that of these 44 banks, none of them come up on The Street.com Bank Rating or BankRate.com. These “brokered” CDs have maturities of 3 months to year 2030 (this past weeks leftovers). I am assurred that these banks are FDIC. Wells Fargo Investments states they have only had two bank go into BK in 2008 and all investors recovered all principle and interest? I wouldfeel much safer moving money into Wells Fargo Bank, but you have convince me that will bust my 72t.I am told to call in at 6:00 a.m. to get the best rates and maturities. I don’t understand the what risks I may face by changing market conditions, if I hold these CDs until maturity?I am also told if I wisk to purchase T-Bills, I am to call in to Wells Fargo Investments, at 6:00 a.m. on Monday to get the best par values. I would have liked to open another IRA at Well Fargo Bank and get 2.9% on a 5 yr. CD, compounded quarterly and I could redeem the CD early and onlylose 6 months interest. All of your posts have enlightened to the truth about my 72t. My financial planner and tax guy has been hard selling me to move into annuities – this is not going to happen because this would break my 72t plan, just as if I opened another IRA account. I want portability in my account, but I now know that I am locked into one account number for the next four years (my Wells Fargo Investments, brokerage account).It would seem to me that my safest option is T-Bills, but they cost $50.00 per purchase. The CD purchases do not cost my any front end fees because I am a premier customer. I have to move some monies this week to avoid exceeding the FDIC insurance limits. I just want peace of mind, and principle protection. I don’t need the money now, I am only 56and have a few more years to go (I hope).Thank you again for answering all my dumb questions.Any more advice will be greatly appreciated.Dougbert2010-04-11 02:40, By: dougbert, IP: [68.5.10.91]