Rollover of 72t Account
Has there been any update since this article was written in 2013?
https://irahelp.com/slottreport/moving-ira-making-72t-distributions
Has there been any update since this article was written in 2013?
https://irahelp.com/slottreport/moving-ira-making-72t-distributions
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Permalink Submitted by Alan - IRA critic on Mon, 2016-10-31 18:51
No material changes regarding partial transfers. While only a couple plans have been busted for partial transfers out of thousands of such transfers, it is advisable not to take the chance unless there is a major benefit expected from the partial transfer. If so, then do the transfer by direct non reportable transfer and keep taking the exact 72t distribution from the original account. There should be no issues for a total transfer, as long as it is made to the same type of retirement plan.
Permalink Submitted by Krista McBeath on Mon, 2016-10-31 19:36
OK. Yes, this would be a total direct transfer. So, we would just need to advise the new custodian of the monthly draw? Do we need to request any documentation?
Permalink Submitted by Alan - IRA critic on Mon, 2016-10-31 19:56
No special documentation. Most custodians code the 1099R with code 1 and the taxpayer has to file a 5329 to override the penalty with exception code 02. Otherwise, the only critical requirement is receiving a 1099R in the same amount as in prior years.