Rebalance in a 72T Plan
I have a 72T Plan in my IRA account. I have a mutual fund in it that has lost its value significantly and is not recovering. I am thinking of getting rid of it entirely and replace it with two new mutual funds. Is it allowed under a 72T Plan? Can I do the sell and buy? Please advise. I will await for your reply. Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2025-06-25 10:53
Yes, you can change investments in your 72t IRA without limit. This does not generate a 1099R.
What you cannot do without busting the plan is to take distributions from the IRA over the year that add up to more or less than your exact 72t calculation, or add contributions to the account.
Permalink Submitted by Nelie Cruz on Wed, 2025-06-25 11:01
Thank you!