Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (32) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: Early W/D From IRA w/Penalty Date: 12/28/1999 12:40 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Wingwanch, and welcome. You asked:

<<In your last post, you mentioned that you have several IRAs, does that mean that you have several IRA accounts? To the IRS you only have one IRA, although maybe you can have one Traditional IRA and one Roth IRA. So can you than use one of these IRA accounts to take out substantially equal amounts at age 58 until age 63, and then treat the other IRA accounts normally for withdrawals at age 59 1/2?

In other words, I have three IRA accounts right now. If I want to start withdrawing next year (age 58), should I choose one of these accounts to do this and leave the others untouched until 59 1/2? >>


For the purposes of Section 72t SEPPs prior to age 59 1/2, you may treat each separate IRA individually. You may take SEPP from one and leave the rest alone. You may start with one, and add another later from which you take SEPP under a different method. All that's required is once you start from any particular IRA, the method used for that IRA may not change and you must continue SEPP for the longer of five years or until you reach age 59 1/2. The required withdrawal period also runs separately for each IRA used. Start one IRA at age 52 using the life expectancy method, and you must continue to take withdrawals from that IRA under that method until you reach age 59 1/2. Start withdrawals from a second IRA at age 56 using the annuity method, and you must continue taking withdrawals from that IRA using that method until age 61.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (32) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement