Two IRAs distributon question

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L1: Two IRAs distributon questionI have two IRAs and am unemployed. I am going to take out a 72t distribution in one IRA and was planning on using theother IRA to takenormal distributions (if needed) with the 10% penalty to pay my bills if I can’t find a job. I need more than the 72t allows fornow so thats why I planned on doing this. I was toldI could do this without affecting and breaking the rules of the 72t IRA. Is that true?2009-12-14 19:31, By: Bob, IP: []
L2: Two IRAs distributon questionYou shouldn’t have any problems – just make sure that you have 2 separate accounts and that each IRA has a separate account number. Merely define which IRA is the SEPP so there is no confusion.2009-12-15 00:05, By: Gfw, IP: []

L3: Two IRAs distributon questionYou may also find by doing this that some of your distributions from the non 72t account may qualify for exceptions to the penalty. Medical costs over 7.5% of AGI and health insurance if you are collecting unemployment are two examples, and there are others. You may need to file a 5329 to claim both your 72t exception and the other exceptions if you have them. If you gain new employment, you may also find that you want to preserve retirement assets by making the one time switch on the 72t account to the MD method. That will reduce your annual distribution by at least 40% unless you account balance has risen.2009-12-16 00:08, By: Alan S., IP: []