SEPP
If a SEPP was established in 2014 with a client who who became 59.5 this year. Can part of that IRA account balance be moved to another IRA to give access to more dollars for the client without destroying the integrity of the SEPP
If a SEPP was established in 2014 with a client who who became 59.5 this year. Can part of that IRA account balance be moved to another IRA to give access to more dollars for the client without destroying the integrity of the SEPP
Permalink Submitted by Alan - IRA critic on Mon, 2015-11-09 19:38
If the other IRA was not part of the original SEPP calculation, the client can take penalty free distributions of any amount they wish from the other IRA after reaching 59.5. But the SEPP IRA cannot be rolled into a non SEPP IRA account without busting the plan. If the plan is busted, the retroactive penalty and interest will only apply to the distributions taken prior to age 59.5.