72t rules
Thank you for the reply earlier. I hope you remember what I had asked earlier. What I really need to know and this is the part that ML is saying I can’t. Can I take part of those accounts and invest it elsewhere while ML continues my 72t payments with the remaining, keeping my 72t payment amounts exactly the same? Thats the part they say I can’t do. ML used 2 of my 4 accounts total assets, 5% of that to give me my 72t payments. They’re saying my payment would change because of moving those assets partially and that would of course bust it. I don’t want to change my amount. I just want to move part of the assets
Permalink Submitted by Alan - IRA critic on Sat, 2023-01-28 00:54
You should post responses to the original thread where the entire thread can be reviewed. As indicated, ML is incorrect and you should ask them for a reason behind these statements. Your 72t plan is between you and the IRS, and ML cannot limit your distributions or bust your plan. But you must not make an execution error in your plan and the 1099R total for all of your IRA accounts within your 72t plan must be exactly correct. You can generally transfer either both or one of the 2 accounts into a new account, which is non reportable, then continue your distributions from the new accounts. However, adding these additional transfers adds risks because if you make an error, it could bust your plan. Again, if your 1099R totals are correct for all distributions taken from your plan accounts, you can claim the penalty exception on Form 5329 regardless of ML codes those 1099R forms. That said, having 4 accounts and only using two of them is allowed, but this added complexity and the transfers or rollovers is not advisable due to the risk of error.