various accounts

You are here:
< Back

L1: various accounts My idea is to have an ira at my brokerage house with my money invested in several different products including bonds, mutual funds, cd,s, fixed annuities and a money market. I plan to have all the dividends move monthly into the money market. I will base my sepp withdrawl on the total value of all the accounts but take my payments from the money market. Is this a legal way to get around having to take a 72t from each seperate account? 2002-06-03 17:55, By: john, IP: [127.0.0.1]
L2: various accounts Different investment accounts don’t necessarily mean different IRA accounts. When the SEPP plan is established, you will designate certain IRA accounts (each IRA may contain one or more investments) as being part of the plan – once designated, only those accounts may be used to a) determine the payment; and b) to make the payments.If you comingle accounts, you’ll merely bust the plan.So the answer to your question… Is this a legal way to get around having to take a 72t from each seperate account?, if I understand it right is NO! 2002-06-03 18:15, By: Gfw, IP: [127.0.0.1]

L2: various accounts But if I hold all these seperate products in one ira account would not it then be legal to take one 72t withdrawl from the total value of the whole ira?2002-06-03 19:24, By: john, IP: [127.0.0.1]

L2: various accounts Yes, but that isn’t a legal way to get around anything – if you hold the investments in one IRA, then that IRA is used to: a) determine the payment; and b) disburse the payment.The number of investments in the IRA doesn’t change the facts. If there is enough in the cash account (money market) to make the payment great, if not you’ll have to take it from one of the other investments in the same account – nothing unique, or am I missing something? Late Addition – don’t confuse investment accounts with IRA accounts – you only have to take withdrawals from same IRA account – regardless of what investments have been included in the IRA account – hope this helps.2002-06-03 19:31, By: Gfw, IP: [127.0.0.1]

L2: various accounts Hello John:I think we have a terminology problem here. IRA does not stand for “Individual Retirement Account”. It really stands for “Individual Retirement Arrangement (or Annuity)”. Thus a way to think about it is that you (singular) only have one IRA. However, your IRA can have unlimited accounts (e.g., one at Vanguard, one at Fidelity and one at Merrill, Lynch). So, thus far, you have one IRA with three distinct accounts. Further, you elect to start SEPPs including accounts 1 & 2 but excluding #3. Generally speaking you will be able to invest in a wide breadth of products (cash, bonds, stocks, pfd stocks, reits, etc.) in all three accounts and you will be free to trade one product for another inside of each of the three accounts.Now, when it comes time to make a SEPP distribution (which is essentially always in cash) you will have a choice: take the cash from Vanguard (#1) or Fidelity (#2) or any mixture between #1 & #2. However, you may never, I repeat NEVER, take the cash from #3 becuase the ML account was not included in the SEPP program at the onset. It might be time to make a SEPP distribution and there is insufficient cash in the sum of accounts #1 & #2. Tough — sell something to create the cash; that’s the only solution.RegardsTheBadgerwjstecker@wispertel.net 2002-06-03 20:49, By: TheBadger, IP: [127.0.0.1]

L2: various accounts So if I am understanding correctly, it is I who designates what constitutes a specific ira account by designating what investment accounts I will use to make up my ira account when setting up my sepp plan?2002-06-03 22:46, By: john, IP: [127.0.0.1]

L2: various accounts You are essentially correct; however, in an abundance of caution I would like to differentiate two issues.Where you say “it is I who designates what constitutes a specific ira account” is NOT correct. An account stands on its own two feet and has a distinct value in its aggregate. Thus, you may not select a portion of an account to be included in the SEPP program; either none of the account or the whole account is included.When you say “by designating what investment accounts I will use to make up my ira account” this is correct.TheBadgerwjstecker@wispertel.net 2002-06-04 09:51, By: TheBadger, IP: [127.0.0.1]