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IRA control
Old 05-01-2023, 08:53 PM   #1
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IRA control

Hello, we currently have IRA plans with an "advisor".

I seem to do much better without "advisors"...

Long story.

Anyways how do we go about getting control of our accounts to not pay a fee anymore?

Or if we begin to draw off one using the 72t I assume we'd still be paying the advisor.

Any advice is appreciated. Thank you
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Old 05-01-2023, 09:01 PM   #2
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Roll it over to a brokerage like Fidelity.
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Old 05-01-2023, 09:03 PM   #3
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Roll it over to a brokerage like Fidelity.
Yes, this. You can actually go in to the Fidelity with your account information, and they can help you with the paperwork, if you need assistance to roll over your account.
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Old 05-01-2023, 09:51 PM   #4
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First set up an IRA at your favorite brokerage, then fill out the paperwork at the receiving brokerage as others described.

Then write a note to your advisor saying you no longer need the service and expect a transfer request. You are sure to get the "how to keep the customer script" of how you can't survive out there in the deep dark woods without the brave guide to steer you around the big bad wolf. Don't give any reasons, don't respond to any questions, just repeat the decision.

There may be proprietary funds that cannot be transferred but instead have to be sold (not a tax problem, but it means that the automatic draw to your broker won't go through until the advisor sells). Also, not every advisor will do this on your say so or with an e-mail or letter. When I did this, my advisor also had their own paperwork that required a Medallion Signature guarantee that I had to go to my bank to get and then mail to them.

Just be persistent and don't let the sales pitches or the delaying tactics stop you.
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Old 05-01-2023, 10:04 PM   #5
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I'm also considering moving a portion of my IRA to Fidelity and have a couple of quick questions.
Are the fixed income options and rates the same as in my taxable account for CD and Treasuries?
Do I still have to fill in trustee to trustee paperwork to move funds out to a bank or credit union if they offer a better deal or is that even an option in a brokerage? If so, is the overall transaction faster?
Are there any other advantages to using a brokerage over a bank?
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Old 05-01-2023, 10:17 PM   #6
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Thank you for the help!

I see calculators for 72T payments, however I'm wondering if there is a way to draw more annually than they set by percentage.

In other words more amount monthly, or with draw more after 59.5yrs?
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Old 05-01-2023, 10:24 PM   #7
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New brokered CD’s at Fidelity can be bought for an after tax brokerage account, IRA or Roth IRA.

For transfers, typically you start the process at Fidelity. If there is any paperwork that needs to be completed, they will manage the process. The times may be anywhere from days to weeks, depending on your old bank, credit union or brokerage.
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Old 05-02-2023, 04:28 PM   #8
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Originally Posted by cloud9nd View Post
Thank you for the help!

I see calculators for 72T payments, however I'm wondering if there is a way to draw more annually than they set by percentage.

In other words more amount monthly, or with draw more after 59.5yrs?


Iím not sure I follow. Once you reach 59.5 you can withdraw whatever you wish. You can designate a separate IRA for your 72t plan.
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Old 05-02-2023, 09:56 PM   #9
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First set up an IRA at your favorite brokerage, then fill out the paperwork at the receiving brokerage as others described.

Then write a note to your advisor saying you no longer need the service and expect a transfer request. You are sure to get the "how to keep the customer script" of how you can't survive out there in the deep dark woods without the brave guide to steer you around the big bad wolf. Don't give any reasons, don't respond to any questions, just repeat the decision.

There may be proprietary funds that cannot be transferred but instead have to be sold (not a tax problem, but it means that the automatic draw to your broker won't go through until the advisor sells). Also, not every advisor will do this on your say so or with an e-mail or letter. When I did this, my advisor also had their own paperwork that required a Medallion Signature guarantee that I had to go to my bank to get and then mail to them.

Just be persistent and don't let the sales pitches or the delaying tactics stop you.

Thank you for the detailed answer.

I'm looking to use a 5 year plan account which would drain an account we have

1. If I do the plan will it be divided by 5 years to drain equally?

2. If I do the plan is it as simple as set up and run it out or will they only allow a portion drained?
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Old 05-03-2023, 06:54 AM   #10
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Originally Posted by cloud9nd View Post
Thank you for the detailed answer.

I'm looking to use a 5 year plan account which would drain an account we have

1. If I do the plan will it be divided by 5 years to drain equally?

2. If I do the plan is it as simple as set up and run it out or will they only allow a portion drained?
You’ll continue to be charged the fees if held at the advisor. I would roll it all at once and begin to take advantage of the no fee structure at another brokerage.
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Old 06-06-2023, 08:03 PM   #11
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Does anyone know how it works to draw your ira for the 5 year lock in?

I know there are lots of restrictions and cons, but I'm curious if you sign up for that do they lock in that allotment no matter what happens

Thank you.
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Old 06-06-2023, 08:34 PM   #12
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You are locked for the number of years until you reach 59.5. You should contact your brokerage directly to setup the 72T. They will likely print out the necessary forms listing the annual withdrawal, taxes withheld and important dates.
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Old 06-06-2023, 09:03 PM   #13
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Okay. So the amount is divided up by 5 years and that's that? Market fluctuating has no bearing?

Thank you
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Old 06-06-2023, 09:20 PM   #14
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The amount you can withdraw is based on a published Federal rate multiplied by the IRA balance. Market fluctuation has no bearing.
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Old 06-06-2023, 10:52 PM   #15
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The amount you can withdraw is based on a published Federal rate multiplied by the IRA balance. Market fluctuation has no bearing.
Not accurate assuming the poster is still asking about 72(t) programs.

Two of the three methods (amortization and annuitization) only consider the chosen interest rate and the initial balance. The third method works like an RMD, and the withdrawal is based on a year end balance and a divisor. A person using this third method in a 72(t) would see their withdrawal fluctuate with yearly market returns.

@cloud9nd, a person using a 72(t) generally can't drain the entire IRA during the 72(t) program. Even with a 5% interest rate, you're only going to be able to draw perhaps 6% of the balance yearly, and presumably the balance in the IRA will grow somewhat over time.

Also, you can't just say, I want to take out $X over that time frame. In order to qualify as a 72(t), the amount taken must match the result of one of the approved calculation methods based on the account balance and a valid interest rate if applicable. The typical problem is getting the withdrawal amount high enough based on the balance. The IRS allowing a person to use a 5% interest rate helps with this issue somewhat - as noted above you might be able to get about a 6% withdrawal rate using a 5% interest rate.

(Despite what was written above, the amortization and annuitization methods are not just simple multiplication, although they do use interest rates as an input.)
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Old 06-06-2023, 10:54 PM   #16
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Does anyone know how it works to draw your ira for the 5 year lock in?
One other nitpick - a 72(t) must last for the longer of 5 years or until 59.5. If you start it at age 58, you have to go to age 63. You can't start at 58 and stop a year and a half later.
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Old 06-07-2023, 12:13 AM   #17
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SecondCor521,
Thanks for clearing this up. I had forgotten about the 3rd option when checking into 72t many years ago, when the published interest rate was lower than it is now. I didn’t like the restrictions that were part of 72t, so I did’t go this route.
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Old 06-11-2023, 08:55 PM   #18
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Not accurate assuming the poster is still asking about 72(t) programs.

Two of the three methods (amortization and annuitization) only consider the chosen interest rate and the initial balance. The third method works like an RMD, and the withdrawal is based on a year end balance and a divisor. A person using this third method in a 72(t) would see their withdrawal fluctuate with yearly market returns.

@cloud9nd, a person using a 72(t) generally can't drain the entire IRA during the 72(t) program. Even with a 5% interest rate, you're only going to be able to draw perhaps 6% of the balance yearly, and presumably the balance in the IRA will grow somewhat over time.

Also, you can't just say, I want to take out $X over that time frame. In order to qualify as a 72(t), the amount taken must match the result of one of the approved calculation methods based on the account balance and a valid interest rate if applicable. The typical problem is getting the withdrawal amount high enough based on the balance. The IRS allowing a person to use a 5% interest rate helps with this issue somewhat - as noted above you might be able to get about a 6% withdrawal rate using a 5% interest rate.

(Despite what was written above, the amortization and annuitization methods are not just simple multiplication, although they do use interest rates as an input.)

Okay, thank you for that information.

So just to be clear for example, let's say an account has 100k in it, you can't just get 20k a year for 5 years?

Thank you
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Old 06-12-2023, 01:19 AM   #19
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Okay, thank you for that information.

So just to be clear for example, let's say an account has 100k in it, you can't just get 20k a year for 5 years?

Thank you
Not with a 72(t) program you can't.

It depends on the method and interest rate you choose, but roughly speaking the most you can get is about 6%, so on an account with $100K in it, you could get out about $6K per year for five years.

Also, as a reminder, 72(t) programs must last for the *longer* of 5 years or until age 59.5. Someone starting a 72(t) at age 50 would need to continue the program for about a decade.
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Old 11-14-2023, 09:41 AM   #20
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Updating with more questions....

I called Fidelity as mentioned here and had no luck with this switching IRA over.

Then, speaking to advisor he says there's paperwork to roll into a CD and needs to write down other funds not in his control.

I'm at a loss here.

I just want to move this IRA away from the advisor and park it in a CD or annuity.

How can I do this without withdrawal penalties and without the advisor involved anymore

Need a 3 yr+ plan.

Any help is appreciated.
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