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Violation of 72T

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ByMBS

L1: Violation of 72TIf a person is liquidating B share funds through SRS in an IRA under 72T – and the liquidations start triggering CDSCs – therefore reducing the distributions – is this considered a violation? Is the person then subject to 10% penalty?2004-03-17 12:56, By: MBS, IP: [24.73.148.165]
L2: Violation of 72TI will profess ignorance to what SRSs and CDSCs are. Give us a little more detail and maybe we can help.
TheBadger
2004-03-17 15:03, By: TheBadger, IP: [38.116.134.130]

L2: Violation of 72TSRSs are systematic liquidations set up to trigger automatically at the broker dealer level – CDSCs are contingent defferred sales charges (for liquidation of B cl****share mutual funds prior to maturity)2004-03-17 15:08, By: MBS, IP: [24.73.148.165]

L2: Violation of 72TIf a person has an IRA and is liquidating mutual fund shares (under this SRS thing or any other thing) and as a result incurs CDSCs (Contingent deferred sales commissions?) then that simply reduces the net cash proceeds from the sale of those mutual fund shares. So what.

That reason can not be used to reduce the distributions made to the account owner. However, the incurrence of these fees inside the IRA are unto themselves, inconsequential.

TheBadger
wjstecker@wispertel.net
2004-03-17 15:19, By: TheBadger, IP: [38.116.134.130]

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