IRA 72t withdrawal?

[teejayevans]

Probably a simple questions, but haven't found the answers anywhere.
What is the definition of an IRA, ie
If I have an IRA with split between 2 funds, is that 1 IRA or 2 (as
far as 72t purposes). And if its 1, and I make withdrawals, can I
specify which fund the 72t deduction comes out of? Lastly, what
do I have to do (if anything) to tell mutual fund company this is
a 72t? I assume they will withheld the 10% penalty if I don't tell
them it's a 72t withdrawal.
TIA
TJ

[crazy connie]

Quote:

Originally Posted by teejayevans Probably a simple questions, but haven't found the answers anywhere. What is the definition of an IRA, ie If I have an IRA with split between 2 funds, is that 1 IRA or 2 (as far as 72t purposes). And if its 1, and I make withdrawals, can I specify which fund the 72t deduction comes out of? Lastly, what do I have to do (if anything) to tell mutual fund company this is a 72t? I assume they will withheld the 10% penalty if I don't tell them it's a 72t withdrawal. TIA TJ

IRA Individual Retirement Account can frequently all be 1 account at a single institution holding various assets. You can specify the funds to be drawn upon. You have to write down your 72T dist plan and communicate clearly to the company holding the account. If you have a large balance in an IRA and need a modest annual amount, I might suggest breaking into 2 IRA's and only drawing against 1. That leaves a back-up amount in case of emergencies.

Please do some serious reading in advance of starting a 72T. Ed Slott and Fairmark Forum are both excellent resources for your studies!

[jazz4cash]

............what connie said. Plus another great resource is Welcome to 72t on the Net.

[CyclingInvestor]

I have 2 IRA's at Schwab - my big IRA which I take 72t distributions from, and my
small IRA for use as a backup if I need extra $$. Whenever I want to make a 72t
distribution, I fill out a form (account #, amount, checkbox if tax withholding
desired, checkbox if subjected to penalty, etc) to transfer the $$ to my regular
stock acct. It is all much simpler than I thought it would be.