IRA Annuity on 72t
Client with an old annuity on 72t distributions taking monthly
Does the IRS allow a replacement of the annuity to another annuity while on 72t?
Secondly if she changes her distribution to annually does this void the 72t agreement?
Permalink Submitted by Alan - IRA critic on Wed, 2024-01-24 19:58
An IRA direct transfer to a new IRA annuity account is allowed, and the IRS does not care about the annual distribution pattern. But the total of the 1099R forms for each IRA annuity must exactly match the 72t calculation. The risks of an execution failure increase if this is done with a 60 day rollover, since such a rollover should be preserved to save the plan should distributions accidently exceed the 72t calculation. Even a transfer will upset the current distribution pattern and present a risk of ending the year with an incorrect total distribution amount.