72T to Life Annuity
I would like to know if I could buy a life annuity from an 72T IRA without the 10% penalty that I have already started taken payments from( 3) not planning on doing thatt but just would like to know If I could or not. Also I just started out the 72T with 540K and three months later down to 535K paying my advisor 1.25% all funds are being staggered over an 8th month period so all are not invested as of today I called my advisor and told him I was very concerned or should I wait till all the funds are invested and give it some time. I have an appointment with and advisor at my credit union which is free and I am thinking of moving both IRA’s total 715K and moving them into Vanguard or the Credit union and saving the advisor fee any thoughts I am going to be 53 in Jan
Permalink Submitted by Alan - IRA critic on Sat, 2017-10-07 18:06
No, you could not do that. While there is a penalty exception for an immediate annuity from a non qualified annuity,there is no such exception for IRA distributions. You must use one of the 3 approved methods outlined in Rev Ruling 2002-62 for the distributions to qualify as substantially equal periodic payments (SEPP).