72(t) withdrawals and two different IRA accounts

[VDR]

I have an IRA account and considering starting the 72(t) payments.  If I split this account into two separate IR accounts, and set up 72(t) from one of them, will I be able withdraw from the other account without busting the existing 72(t) sequence?

P. S. The reason for doing this would be to ensure that in case of an unforeseen cash need, I still have an emergency resource that wouldn't destroy the entire 72(t). 

[Mike9241]

72(t)deals with a 10% penalty on early withdrawals with certain exceptions 

(i)made on or after the date on which the employee attains age 59½,
(ii)made to a beneficiary (or to the estate of the employee) on or after the death of the employee,
(iii)attributable to the employee’s being disabled within the meaning of subsection (m)(7),
(iv)part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and his designated beneficiary,
(v)made to an employee after separation from service after attainment of age 55,
(vi)dividends paid with respect to stock of a corporation which are described in section 404(k),

(vii)made on account of a levy under section 6331 on the qualified retirement plan, or
(viii)payments under a phased retirement annuity under section 8366a(a)(5) [3] or 8412a(a)(5) of title 5, United States Code, or a composite retirement annuity under section 8366a(a)(1) [3] or 8412a(a)(1) of such title

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So if you're not required to take RMDs, you can do what you like. if you don't meet one of the exceptions then there will be the 10% penalty.  when you reach the age where RMDs must start the value of the accounts will be reduced by these earlier distributions.  You would need to add the total value of both accounts to determine the RMD which can be taken in whole from either account or split any way you want. 

[VDR]

Thanks CHAMP.  My question was actually about the 72(t) rather than RMD.  Can I split my IRA into two accounts, IRA-1 and IRA-2, initiate 72(t)  withdrawals from IRA-1 based on its value solely, and then if I need more money within the next 5 years, withdraw from IRA-2 and paying 10% penalty only on that additional withdrawal, without breaking the 72(t) payments?

Relatedly, if using two accounts this way is indeed possible, would I be able to withdraw under 72(t) from IRA-1 and simultaneously making  IRA to ROTH conversion from IRA-2 without incurring 10% penalties?

[Critter-3]

Sorry but it doesn't work that way ... when converting an IRA to a ROTH using the form 8606 the total year end balance of all your traditional IRAs are used ... you cannot convert "in a vacume" so the splitting of the one IRA into 2 pieces is not needed.   When you convert there are no penalties applied to the converted amount  so you have no need to split the IRA into 2 at all but there is no restriction to doing so either if this helps you. 

For instance .... if you take a $1000 distribution from the IRA and convert $400  then you will get one  1099-R showing the $1000 distribution and in the TT program you will indicate that you converted $400 leaving $600 as a taxable distribution subject to tax and possibly  the 10% penalty.  You do not need 2 1099-R forms at all.  

[VDR]

Thanks a lot for the reply.  I think some detail was missed though.  I am not talking about IRA to ROTH conversion.  I am talking about payments from IRA under 72(t), or Substantially Equal Periodic Payments.  I believe I have seen somewhere that the amount of payments is determined by the balance of that specific account from which a payment is being made, hence is the question of what happens if I split one account into two.

[Mike9241]

if you split an IRA in to two IRA accounts the RMD is computed separately for each one . however, once you know the RMD for the year all the IRS cares about is that you take it. it can be from one or the other or split anyway you want as long as the total distributed = RMD