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moving IRA with 72T SEPP
Old 01-12-2007, 05:52 PM   #1
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moving IRA with 72T SEPP

I'm in the process of moving my investments to Vanguard. One of my IRA's has been set up for a 72T SEPP. The Vanguard folks told me that they took no responsibility for any tax problems from the move. Has anyone moved an IRA like this? Since it's not a move, but a exit and restart with the new company, ie account change, does the IRS treat it like a disqualification and will I owe penalties since I won't have satisfied the 5 year/59.5 age max time requirement?

Is there any special way to make the move? I don't think I want to leave the IRA in place - it actually is pretty small, and just an $8K withdrawal/yearly.
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Re: moving IRA with 72T SEPP
Old 01-12-2007, 07:52 PM   #2
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Re: moving IRA with 72T SEPP

Quote:
Originally Posted by lb
Is there any special way to make the move? I don't think I want to leave the IRA in place - it actually is pretty small, and just an $8K withdrawal/yearly.
They're just telling you that they don't have anybody who knows how to do this don't take any responsibility for the other fund company's numbers.

As long as you're just executing a custodian-to-custodian rollover (not touching the money yourself) then it doesn't make a difference. If you keep your own records from both fund companies then you'll be fine. Vanguard just wants to make sure that you know they won't be holding your hand...
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Re: moving IRA with 72T SEPP
Old 01-12-2007, 09:17 PM   #3
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Re: moving IRA with 72T SEPP

You may want to post this question on the discussion forum at
www.72t.net
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Re: moving IRA with 72T SEPP
Old 01-15-2007, 05:34 PM   #4
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Re: moving IRA with 72T SEPP

It would be nice it was just a matter of the numbers used to set up the 72T, but after a couple of go arounds with the retirement folks at Vanguard, he specifically told me it was they don't want to be involved with the tax issue about whether this causes the past withdrawals to be disqualified.

I did post on the 72T board, and got advice to do a transfer and I shouldn't have any problems. Mention of a 5329 form, so I will have to check last year's taxes (lazy, don't do my own). I have a question in to my tax guy too....

Was hoping someone here might have done this before and didn't have a problem. I think I will proceed anyways. It will be interested what other little issues come up with the transfer. It's a large enough amount that I have a Vanguard transfer specialist helping out. Now I really will have to pick an asset allocation!



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