Permalink Submitted by Alan - IRA critic on Wed, 2014-03-05 18:47
The custodian can be changed without busting the plan, but the entire IRA should be transferred, not just part of it. It is also preferable to move the funds by non reportable trustee transfer rather than by indirect rollover. Taxpayer would probably need to file a 5329 every year to claim the SEPP exception if he is not doing that already.
Permalink Submitted by Joseph Cantou on Fri, 2014-03-07 16:23
Yes, the new custodian understands and supports the 72t plan I was just worried by changing custodians and adding a bonus to the IRA that would bust the 72t.
Permalink Submitted by Alan - IRA critic on Wed, 2014-03-05 18:47
The custodian can be changed without busting the plan, but the entire IRA should be transferred, not just part of it. It is also preferable to move the funds by non reportable trustee transfer rather than by indirect rollover. Taxpayer would probably need to file a 5329 every year to claim the SEPP exception if he is not doing that already.
Permalink Submitted by Joseph Cantou on Thu, 2014-03-06 00:46
Thank you
Permalink Submitted by Joseph Cantou on Thu, 2014-03-06 00:49
Can money be added to the transfer in the form of a bonus? Like 5%bonus on 300,00.00?
Permalink Submitted by Alan - IRA critic on Thu, 2014-03-06 01:00
As long as it is not a reportable contribution. Does the new custodian understand and support 72t plans?
Permalink Submitted by Joseph Cantou on Fri, 2014-03-07 16:23
Yes, the new custodian understands and supports the 72t plan I was just worried by changing custodians and adding a bonus to the IRA that would bust the 72t.