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when the bust occurs

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Last Updated On
Bybj

L1: when the bust occursHello,
I appreciate your site, thanks!
Here is my concern;
My original SEPP (ira)was established by a broker who passed away right after my acct was started as I began to take sepppayments in 2000. I moved my acct to a discount broker in 01, after massive losses with the original firm(150k).
Now I am looking at 2006 as the year my acct goes bust with the currentestablished distributions. I am 54.
1) Do I need to do anything in ref to the Gov.?
2) How will the Gov know that my acct is bust and excuse me from penalties(ruling in 2002)?
3) Can any portion of the current IRA be split into a new IRA to preserve some of the funds, (Iwill go to a reduced distribution(one time change)if I canfind a job before 2006)
I’m still just looking for a solution to this mack truck coming my way-
thanks again–
bj 2004-08-21 12:31, By: bj, IP: [4.224.90.127]

L2: when the bust occurs1. No.
2.Technically, they won’t; rather your last distribution should still be coded a “2” on your 1099R. You would only need to tel them if audited.
3. No.
Remember that you can always switch to the RMD method; however, you may not like the results.
TheBadger
wjstecker@wispertel.net
2004-08-21 18:18, By: TheBadger, IP: [66.250.23.21]

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