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Will 72t be violated using a 5 yr single prem. immed. annuity

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ByTodd

L1: Will 72t be violated using a 5 yr single prem. immed. annuityI have heard of the bucket approach to income planning, using a different investment vehicle for each bucket and getting more aggressive the farther out each bucket is before use. Would 72t be violated in using a single premium immediate annuity for the income for the first 5-6 years and then converting other assets to replinish the income after the inital period has expired. Can all the IRA assets be aggregated as long as your not taking income greater than the 72t calculation for the entire account? ie. 1m IRA using 26% of the assets to purchase a SPIA to generate the income for the entire portfolio for the first 5 years. Thanks, Todd2009-11-24 21:25, By: Todd, IP: [72.54.72.43]
L2: Will 72t be violated using a 5 yr single prem. immed. annuitySet up a custodial account for ALL the IRA investments to be allocated to the SEPP. Then have the custodial account purchase the annuity (just like any other investment)and have payments from the annuity paidback to the custodial account. You just need to find an IRA Custodian/Trustee that will cooperate with your plan.2009-11-24 21:32, By: Gfw, IP: [216.80.125.206]

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