Headlines about "Distributions - rollovers"
Gathered from the web by the editors at BenefitsLink.com.
The U.S. Retirement Market, 2008 (PDF)
Excerpt: "mployer-sponsored retirement plans play a key role in helping American workers save for retirement. The bulk (nearly two-thirds) of Americans' retirement assets was held in employer-sponsored retirement plans at year-end 2008. Furthermore, a significant portion of assets held in IRAs originated in employer plans and were then transferred (or 'rolled over') into IRAs." (Investment Company Institute)
Entrepreneurs Financing Start-Ups from Retirement Accounts: The 'Rollover As Business Start-Ups'
Excerpt: "The Internal Revenue Service has recently expressed concerns about the technique. This method of financing start-ups has been around--and controversial--for some time. Forbes first looked at the pros and cons of using retirement accounts to finance businesses in 2004. Our advice: Entrepreneurs interested in the method should split their IRAs into two, one to invest in the new business and the other to manage a diversified retirement portfolio separate from the new business and associated risks." (Forbes.com)
Morgan Stanley Fined $7M for Broker IRA Rollover Misconduct
Excerpt: "The Financial Industry Regulatory Authority (FINRA) announced that it has fined Morgan Stanley & Co. $3 million and ordered it to pay more than $4.2 million in restitution to resolve charges that its supervisory system failed to prevent brokers from violating FINRA rules on handling of IRA rollover/retirement accounts." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Capturing Rollovers; Effects on Fiduciaries and Service-Providers of the DOL Regulation on Investment Advice for Participants
Excerpt: "n this bulletin, we examine comments made by the DOL in the Preamble to the regulation regarding recommendations by fiduciaries and service providers concerning distributions and rollovers from qualified plans to IRAs. We are currently advising RIA and broker-dealer clients on how to structure their rollover programs in light of this guidance . . . ." (Reish Luftman Reicher & Cohen)
Communicating Benefit Information During Layoffs Can Be Tricky
Excerpt: "With tens of thousands of U.S. layoffs occurring each month, corporate leaders are trying to negotiate a delicate balance: How do they ensure that jettisoned employees pay attention to sometimes time-sensitive and complex decisions at an emotion-laden time? Even during a routine workday, understanding the various acronyms and terms involved can be daunting: COBRA, lump sum, 401(k) rollover and so on." (Workforce Management; free registration required)
[Guidance Overview] Retirement Plan Portability Chart As of 2009: Rollover to Recipient Plan
The chart outlines the rollover rules after the Pension Protection Act (PPA) of 2009. (McKay Hochman Co.)
[Guidance Overview] Another Question is Answered in the 401(k) Plans Q&A Column
Our defined contribution plan is top-heavy for the year 2009. The percentage was 61.38%. Would any of these options help? (1) Have one of our highly compensated employees ("HCEs") roll over her money into an IRA? (2) Have a non-highly compensated employee ("NHCE") roll over her money out of our plan? (3) Have an NHCE roll over her money into our plan? If the NHCE rolled her money into the plan, the top-heavy ratio would be less than 60%. (BenefitsLink.com)
EBRI Studies Lump-Sum Distributions at Job Change
Excerpt: "Workers' future financial adequacy in retirement can be profoundly affected by whether their lump-sum distributions at job change are cashed out or retained in another savings vehicle. This is particularly the case for younger workers and those with large balances. This article uses 2006 data (the latest available) from the Census Bureau's Survey of Income and Program Participation (SIPP) to analyze the decisions made by workers at job change when they receive a lump-sum payment from an employment-based retirement plan." (Employee Benefit Research Institute (EBRI))
Lump-Sum Distributions at Job Change (PDF)
12 pages. Excerpt: "This article uses 2006 data (the latest available) from the Census Bureau's Survey of Income and Program Participation (SIPP) to analyze the decisions made by workers at job change when they receive a lump-sum payment from an employment-based retirement plan." (Employee Benefit Research Institute)
Analysis: Lump-Sum Distributions and Retirement Income Security (Updated 1/7/2009) (PDF)
18 pages. Excerpt: "Lump-sum distributions that are spent rather than saved can reduce future retirement income. If the lump-sum distributions received between 1980 and 2006 that were not rolled over had instead been invested in retirement accounts that earned the average annual rate of return on AAA-rated corporate bonds, they would have grown to a median value of $8,800 by 2006. In that year, the median age of those who had not rolled over their distributions was 44. If this amount were to remain invested until the recipient reached age 65 and earned an average annual rate of return of 6%, it would grow to a value of $29,900. With this amount, a 65 year-old man could at current interest rates purchase a level, single-life annuity that would pay $220 in monthly income for life." (Congressional Research Service, U.S. Library of Congress)
[Guidance Overview] Overview of the Worker, Retiree and Employer Recovery Act of 2008
Excerpt: "Emergency Funding Relief For Defined Benefit Plans . . . Technical Modifications to the PPA . . . Non-Technical Retirement Security Provisions . . . Mental Health Parity and Addiction Equity Act For Collectively Bargained Plans . . . ." (McGuireWoods)
[Guidance Overview] President Signs Worker, Retiree and Employee Recovery Act of 2008
Excerpt: "[The new law] provides much needed funding relief to pension plans in light of the current economic crisis. The Recovery Act also temporarily suspends the age 70? required minimum distribution rules for participants in 401(k), 403(b), and other defined contribution plans; clarifies rules on nonspouse beneficiary rollovers; and extends favorable tax treatment for health care premiums paid by government retirement plans on behalf of retired public safety officers." (Ballard Spahr Andrews & Ingersoll, LLP)
[Guidance Overview] President Signs the Worker, Retiree, and Employer Recovery Act of 2008
Excerpt: "On December 23, 2008, the President signed the Worker, Retiree, and Employer Recovery Act of 2008 (Recovery Act), which provides much needed funding relief to pension plans in light of the current economic crisis. The Recovery Act also temporarily suspends the age 70? required minimum distribution rules for participants in 401(k), 403(b), and other defined contribution plans; clarifies rules on nonspouse beneficiary rollovers; and extends favorable tax treatment for health care premiums paid by government retirement plans on behalf of retired public safety officers. A brief description of the Recovery Act's major elements is set forth [in the target document]." (Ballard Spahr Andrews & Ingersoll, LLP)
Need a Loan? Tap Your 401(k), Without Penalty
Excerpt: "Here's how it works. An entrepreneur, aided by the outside adviser, creates a corporation. The newly formed entity starts a 401(k) plan, and an individual rolls over existing retirement funds into the account. Under 401(k) rules, the plan can purchase shares in the corporation -- money that can be plowed into a small business that sells a product or service. Those deals are considered investments, which is the key. By investing the money rather than withdrawing it, entrepreneurs avoid triggering a penalty that amounts to 10% of the assets." (Business Week)
When You Retire, Where Should Your 401(k) Money Go? Here's How to Make That Decision
Excerpt: "[A]dvisers urge investors to do their homework before making a rollover decision: Analyze the range of offerings in your 401(k) plan, envision when and for what reason you might tap your retirement savings and examine the tax consequences of both options, paying special attention to what happens if funds are rolled over incorrectly. For some retirement savers, it may be the first time they have given any significant thought to these kinds of issues." (The Wall Street Journal)
[Guidance Overview] Use of 'ROBS' Plans, 'Rollovers as Business Startups,' to Fund Start-up Businesses
Excerpt: "ROBS generally are structured as profit-sharing plans with a ?401(k) cash-or-deferred arrangement ('CODA') attached. Typically, the client is someone who has a large amount of retirement savings that he or she wishes to use to start a new business. ROBS, in effect, are wolves in sheep's clothing: a legitimate profit sharing plan that may even have an IRS favorable determination letter, but whose main purpose is to allow individuals to access their retirement savings without paying income or penalty taxes, on the theory that there has been no taxable distribution." (Tax Management, Inc.)
[Guidance Overview] 2008 Year-End Checkup for Pension and Welfare Benefit Plans (PDF)
17 pages. Excerpt: "This Alert will help identify general year-end administrative and planning issues that could lead to compliance or employee relations problems if not addressed before, or early in, 2009. In addition, we have highlighted recent legislative or regulatory developments that may require plan design or documentation changes." (Aon)
[Guidance Overview] Video: Rules for IRA Rollovers and Transfers
5 minutes. (Wolters Kluwer)
[Official Guidance] IRS Letter on ROBS ? Rollovers as Business Startups (PDF)
15 pages. Excerpt: "Recently, personnel in our examination and determination letter functions have identified a retirement plan design that appears to operate primarily to transact in employer stock, resulting in the avoidance of taxes otherwise applicable to distributions from tax-deferred accounts." (Internal Revenue Service)
[Official Guidance] IRS Guidelines Regarding Rollovers as Business Startups (ROBS) (PDF)
15 pages. Excerpt: "Procedures for examination and determination agents when dealing with these transactions." (Internal Revenue Service)
[Guidance Overview] IRS Says: Beware of ROBS - 'Rollovers as Business Startups'
Excerpt: "With a lot of baby boomers nearing retirement, some may be looking for alternatives to the stock market for investing their accumulated retirement plan assets. Some may even be approached by promoters promising that they can use their funds in their 401K, IRA, profit-sharing, or annuity plans to open a business without paying taxes on the distribution. In its most recent newsletter here, the IRS has provided a lot of helpful information on the legal pitfalls pertaining to the design of these programs. The IRS is calling these programs 'ROBS' which stands for 'Rollovers as Business Startups.'" (Attorney B. Janell Grenier via Benefitsblog.com)
[Official Guidance] Text of IRS Employee Plan News; Discussions of Filing Cycle for Governmental Plans, Rollovers as Business Startups (PDF)
Excerpt: "This Special Edition discusses the IRS modifying the filing cycle for governmental plans under the staggered remedial amendment program. In addition, this edition talks about the initial guidelines released on Rollovers as Business Startups (ROBS). Some other items of interest included in this edition are 2009 Retirement Plans Limits Announced; List of Recent Guidance that May Require Interim or Discretionary Amendments; and 403(b) Phone Forum [on] December 4, 2008." (Internal Revenue Service)
[Guidance Overview] Final Regs Allowing for Distributions to Missing Nonspousal Beneficiaries
Excerpt: "The Employee Benefits Security Administration (EBSA) has released final regulations and a related Prohibited Transaction Class Exemption that amend existing distribution requirements for terminated defined contribution plans, including abandoned plans, to allow rollovers into inherited IRAs for missing nonspouse beneficiaries. These final rules clarify the Pension Protection Act of 2006 (PPA; P.L. 109-280) provisions regarding missing participants and are effective on November 6, 2008." (Wolters Kluwer)
[Guidance Overview] DOL Finalizes Annuity Selection Rule and Amendments to Plan Termination Rules for Missing Non-Spouse Beneficiaries
Excerpt: "The DOL has finalized (1) the annuity selection rule for individual account plans (including 401(k) plans); and (2) amendments to the fiduciary safe harbor for making IRA rollover distributions from terminating plans. The final rule and amendments conform the regulations to changes made by the Pension Protection Act of 2006 (PPA)." (Employee Benefits Institute of America (EBIA))
[Official Guidance] Text of EBSA Amendment to ERISA Prohibited Transaction Exemption for Services Provided in Connection with Termination of Abandoned Individual Account Pension Plans (PDF)
3 pages. Excerpt: "This document amends PTE 2006–06 . . . , a prohibited transaction class exemption issued under [ERISA]. Among other things, PTE 2006–06 permits a 'qualified termination administrator' (QTA) of an individual account plan that has been abandoned by its sponsoring employer to select itself to provide services to the plan in connection with the plan's termination, and to pay itself fees for those services. In response to changes to the Internal Revenue Code of 1986 (the Code) enacted as part of the Pension Protection Act (PPA) of 2006, PTE 2006–06 is amended to require, as a condition of relief under the exemption, that benefits for a missing, designated nonspouse beneficiary be directly rolled over into an inherited individual retirement plan that fully complies with Code requirements." (Employee Benefits Security Administration, U.S. Department of Labor)
[Official Guidance] Text of Amendment to Final EBSA Regs: Safe Harbor for Distributions from Terminated Retirement Plans, Including Orphan Plans (PDF)
9 pages. Excerpt: "The [DOL] is amending these regulations to reflect changes enacted as part of the Pension Protection Act of 2006 to the Internal Revenue Code of 1986 . . . under which a distribution of a deceased plan participant's benefit from an eligible retirement plan may be directly transferred to an individual retirement plan established on behalf of the designated nonspouse beneficiary of such participant. Specifically, the amended regulations require as a condition of relief under the fiduciary safe harbor that benefits for a missing, designated nonspouse beneficiary be directly rolled over to an individual retirement plan that fully complies with Code requirements. . . . This final rule is effective November 6, 2008." (Employee Benefits Security Administration, U.S. Department of Labor)
Rescue Package Includes IRA Charity-Rollover Provision
Excerpt: "The massive financial rescue package signed into law last week, HR 1424, includes a provision to continue allowing tax-free gifts from IRAs to charities. The bill would permit such IRA distributions through the end of 2009 for certain individuals. The tax code provision allowing the contributions expired at the end of 2007." (Investment News; free registration required)
Lifestyle/Lifecycle Funds Best Strategy for Capturing Rollovers
Excerpt: "A new Cerulli report suggests that between 2008 and 2013, rollovers from 401(k), 403(b), and 457 plans will account for nearly $1.9 trillion of asset flows into traditional IRAs, which will increase to $6.1 trillion by 2013. According to the report, 'IRA Rollover and Retention: Strategies and Positioning,' real success in capturing these assets will hinge on the right mix of advice." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of IRS 2008-2009 Priority Guidance Plan, Including Reg Projects for Retirement Benefits, Executive Comp, Healthcare and Other Benefits (PDF)
31 pages; dated September 10, 2008. (Internal Revenue Service)
Tax Break on IRA-to-HSA Rollover May Have Little Impact on Enrollment
Excerpt: "In an effort to spur funding of health savings accounts, the Internal Revenue Service recently issued guidance on boosting HSA balances with money from individual retirement accounts. Individuals covered by a high-deducible health plan that also own a traditional or Roth IRA can make a one-time IRA-to-HSA funding transfer without facing federal income taxes or penalties. The transfer amount, however, cannot exceed the individual's maximum HSA contribution limit." (Employee Benefit News; free registration required)
IRA Rollover Dynamics 2008: Market Sizing, Benchmarks, & Best Practices - Overview and Table of Contents (PDF)
11 pages. Excerpt: "The study evaluates existing distribution platforms and assesses the involvement and impact of asset managers in capturing and retaining rollover assets. A detailed examination of current and future market size projections offers a unique analysis behind the trends shaping these projections. The study also provides insights into advisor preferences for value-added programs that will assist in better positioning and targeting these programs with relation to retirement and rollovers." (Financial Research Corporation)
Rollover Market to Reach $500B in Five Years
Excerpt: "A new report predicts that the market for assets rolled over from employer plans should approach $500 billion by 2013. The Financial Research Corporation (FRC) study said rollover totals should increase steadily from their 2007 levels of $260 billion. In its 'IRA Rollover Dynamics 2008 -- Market Sizing, Benchmarks, & Best Practices,' FRC said the rollover trend should present money managers with 'significant retention opportunities.'" (PLANSPONSOR.com; free registration required)
[Guidance Overview] Another Question is Answered in the 401(k) Plans Q&A Column
What is a "traditional IRA"? (BenefitsLink.com)
[Guidance Overview] Transfers to Puerto Rican Qualified Plans May Be Treated as Distributions and May Raise Disqualification Issues (PDF)
Page 2 of 5 pages. Excerpt: "On Juy 1, 2008, the IRS issued Revenue Ruling 2008-40, 2008-30 IRB, which clarifies the treatment of assets transferred from a qualified pension plan to a plan qualified under section 1165(a) of the Puerto Rico Internal Revenue Code (the 'PRIRC')." (Miller & Chevalier Chartered)
Rethinking 401(k) Rollovers - 7 Things to Consider Before You Move Your Nest Egg Into an IRA
Excerpt: "Conventional retirement wisdom tells us that when you leave a job, you should roll over your 401(k) to an IRA. Rollovers allow you to continue delaying taxes on your nest egg as it accumulates and avoid an early-withdrawal penalty. But if you have an especially good 401(k) with your old company, it may be better to leave your retirement money there or roll it over into your new company's 401(k)." (U.S. News & World Report)
Leaving 401(k) at Old Job Could Be Best Way to Go
Excerpt: "Leaving an employer and planning to take retirement savings with you? In some cases, your money doesn't need to move on as badly as you do.A 35-year-old worker who leaves savings with a former employer instead of rolling it into an individual retirement account that charges 30 basis points more in fees resulted in a balance that was roughly 10 percent higher by age 70, according to a statement this month from Hewitt Associates prepared for the Senate Special Committee on Aging." (Chicago Tribune)
[Guidance Overview] Taxpayer Required to Include SEP Distribution in Gross Income, According to Tax Court
Excerpt: "A taxpayer was required to include in his gross income a $25,000 distribution from his individual retirement account-based simplified employee pension (SEP) that the taxpayer failed to roll over to another IRA. In addition, the taxpayer was liable for the IRC Sec. 72(t) 10% additional tax on premature distributions. These were the conclusions of the U.S. Tax Court in Atkin v. Commissioner (Docket No. 5266-05. T.C. Memo. 2008-93)." (Wolters Kluwer)
[Guidance Overview] Rollovers to Plan Service Providers Present Fiduciary Concerns
Excerpt: "Plan sponsors and retirement plan service providers each have reason to be concerned about a recent decision in an ERISA lawsuit pending before a federal court in Iowa. That decision allowed former participants in two separate 401(k) plans to proceed with their claims that the Principal Financial Group, the third-party service provider for each plan, breached its fiduciary duties by encouraging retired participants to roll their plan accounts into high-cost IRA products affiliated with Principal. (Young v. Principal Financial Group, Inc.)" (Spencer Fane Britt & Browne LLP)
When Changing Jobs, What Should You Do with Your Old 401k?
Excerpt: "While leaving your retirement account with a former employer is a better decision than cashing out your account and splurging on a boat, it may be more beneficial to consolidate your retirement savings by rolling your old 401k or similar employer-sponsored retirement plan into an IRA." (Linda Horn via 401khelpcenter.com)
Advisers Should Help Investors Decide Whether to Move 401(k) Money Into an IRA
Excerpt: "Retirement plan rollovers are reshaping the business of financial advice. In 2008 alone, $536 billion is expected to roll out of 401(k) plans into individual retirement accounts, according to Boston-based Cerulli Associates Inc." (Investment News; free registration required)
Should You Leave Retirement Funds at Old Job?
Excerpt: "Workers who get laid off must decide whether to take their retirement plan with them or leave it with their employer." (Orlando Sun-Sentinel)
[Guidance Overview] Reporting Rollovers from Pretax Plan Accounts to Roth IRAs
Excerpt: "Recent IRS guidance (Notice 2008-30) explained that plans must allow participants to make direct rollovers from pretax plan accounts to Roth IRA accounts. Since the rollover is taxable, the participant may choose to have the employer withhold income taxes. Withholding is not mandatory. What does this mean for 1099-R reporting? The [target page] example illustrates the complexities of reporting these rollovers." (SunGard Corbel LLC)
[Official Guidance] Text of IRS Notice 2008-51 Detailing Rules for Transfer of IRA Funds to an HSA (PDF)
The notice provides guidance on the proper tax treatment of qualified health savings account funding distributions (transfers from IRAs), effective for tax years beginning after 2006. (Internal Revenue Service)
[Guidance Overview] PPA: IRS Provides Guidance on 2008 Distribution Rules (PDF)
Excerpt: "The Pension Protection Act of 2006 (PPA) includes several provisions relating to payments made from various types of pension plans that became effective for distributions made on or after January 1, 2008. On March 5, 2008, the IRS released Notice 2008-30, providing guidance regarding the following provisions: Rollovers to Roth IRAs; Payment of gap period income on excess deferrals; Qualified Optional Survivor Annuities (QOSAs); and Calculation of lump sum benefits in defined benefit plans." (Prudential's Pension Analyst)
[Guidance Overview] Retirement Plan Asset Rollovers
Excerpt: "A participant may make a direct rollover of some of the qualified plan assets and take a distribution of part. If a partial distribution is made to a participant and it is eligible for rollover, there is 20% mandatory withholding. Also, when there is a partial rollover, the rules require that pre-tax amounts are distributed and thus, rolled over before any after-tax amounts." (McKay Hochman Co., Inc.)
[Guidance Overview] Retirement Plan Service Provider May Be Liable for Breach of ERISA Fiduciary Duty in Cross-Selling Rollover IRAs Invested in Proprietary Mutual Funds
Pages 1-2 of 7 pages. Excerpt: "A federal district court in Iowa allowed class action claims to proceed against a financial services company for alleged breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974, as amended ('ERISA'), resulting from the company encouraging retirement plan participants to roll over their 401(k) plan assets into IRAs invested in the company's proprietary mutual funds." (Goodwin Procter LLP)
Consolidating Retirement Funds
Excerpt: "Consolidating multiple retirement plans can help simplify life and gain control over qualified plan assets. For example, consolidating IRA and 401(k) assets with one institution may save both time and money. Assets can be transferred from one IRA provider to another without taxes or penalties." (The Republican Eagle)
[Guidance Overview] Former Participants Have Standing to Pursue Equitable, But Not Legal Remedies With Respect to IRA Rollovers (PDF)
2 pages. Excerpt: "Plaintiffs are former participants in 401(k) plans, who allege that in rolling over their plan accounts to IRAs, defendants violated ERISA. On April, 21 2008, a federal judge in Iowa ruled that former participants in a 401(k) plan lacked standing to pursue legal remedies under ERISA, despite the Supreme Court's recent ruling in LaRue v. DeWolff, Boberg & Assoc., Inc., 128 S. Ct. 1020 (2008), but held that standing was proper to pursue equitable relief under ERISA. Young v. Principal Financial Group, Inc., S.D. Iowa., No. 4:07-cv-386." (Sutherland Asbill & Brennan LLP)
[Official Guidance] Text of First Periodic Update to IRS 2007-2008 Priority Guidance Plan (PDF)
49 pages. Excerpt: "The attached update sets forth the guidance on the original 2007-2008 Priority Guidance Plan that we have published. Although the update may indicate that a particular item on the plan has been completed, it is possible that one or more additional projects may be completed in the plan year relating to that item. The update also includes 61 items of additional guidance, some of which have already been published.' See section entitled EMPLOYEE BENEFITS and section entitled EXECUTIVE COMPENSATION, HEALTH CARE AND OTHER BENEFITS, AND EMPLOYMENT TAXES. (Internal Revenue Service)
[Guidance Overview] If an Individual Rolls Over Two IRA Distributions in a 12-Month Period, What Are the Consequences?
Excerpt: "An IRA owner is allowed to roll over just one distribution from the same IRA, or the same assets, in a 12-month period. According to the instructions for filing Form 5498, an IRA custodian/trustee should report (or correct any reporting already completed) any ineligible rollover contribution as a regular contribution. This required reporting serves to make the second (or third, etc.) distribution from a single IRA in a 12-month period, taxable." (Wolters Kluwer)
[Guidance Overview] IRS Answers Questions About PPA Distributions
Excerpt: "In Notice 2008-30, the IRS answers questions about certain distribution-related provisions of the Pension Protection Act of 2006 (PPA) that took effect in 2008. The notice addresses interest rate assumptions for lump sum distributions, rollovers from eligible retirement plans to Roth IRAs, qualified optional survivor annuity (QOSA) requirements and gap-period earnings." (Watson Wyatt Worldwide)
[Guidance Overview] Notice 2008-30 - Guidance on PPA Changes to Distribution Rules for 2008
Excerpt: "Notice 2008-30 provides guidance on distribution-related provisions of the Pension Protection Act of 2006 (PPA) that are effective in 2008, including rollovers from eligible retirement plans to Roth IRAs, additional survivor annuity options, and interest rate assumptions for lump sum distributions. The notice also provides guidance regarding plan amendments for certain gap-period earnings." (McKay Hochman Co., Inc.)
Retirement Plan Mistakes to Avoid
Excerpt: "It is fairly common knowledge that if you leave your employer, you have several choices available to help you postpone taxation on your retirement plan balance: Leave it where it is, if your former employer permits it. Roll the balance into your new employer's plan, if the plan permits it. Roll the balance into an IRA within 60 days of distribution. Even if you choose one of the above options, two common situations can generate unintended consequences." (Seacoast Media Group)
[Guidance Overview] IRS Guidance on 2008 Law Changes
Excerpt: "The IRS has released guidance on several law changes going into effect in 2008. Of interest to defined contribution practitioners, Notice 2008-30 discusses distributions of gap period income for 402(g) corrections, rollovers of pretax plan accounts to Roth IRAs, and qualified optional survivor annuities." (SunGard Corbel LLC)
[Guidance Overview] Rollovers to Nonspouse Beneficiaries Are Back With Passage of H.R. 3361 - For 2009 not 2008
Excerpt: "For rollovers to nonspouse beneficiaries, the passage of H.R. 3361 has significant impact because of the IRS' position on rollovers to nonspouse beneficiaries." (Pension Protection Act Blog)
[Guidance Overview] Overview of Nonspouse Beneficiary Rollover Rules
Excerpt: "Guidance on this topic has evolved since the enactment of the Pension Protection Act of 2006 (PPA). The purpose of this article is to provide all the rules on nonspouse beneficiary rollovers in one place. To start, we provide a list of the guidance on this subject incorporated into this article." (McKay Hochman Co., Inc.)
[Guidance Overview] IRS Issues Guidance on Rollovers to Roth IRAs, Optional Survivor Annuity Rules
Excerpt: "The IRS has issued guidance, in question-and-answer format, on the provisions of the Pension Protection Act of 2006 (PPA, P.L. 109-280) which relate to distributions after December 31, 2007." (Wolters Kluwer)
Federal Thrift Saving Plan Adds a Roth Option
Excerpt: "Early in 2008, the Thrift Savings Plan (TSP) added a new withdrawal option for TSP participants who are eligible to transfer their TSP accounts to a traditional IRA or to an eligible retirement plan. Eligible participants are now able to transfer their accounts to a Roth IRA." (FederalNewsRadio - WFED 1050 AM)
[Guidance Overview] Q&A Guidance on New Requirements - Gap-Period Earnings on Excess Deferrals and Rollovers to Roth IRAs
Excerpt: "This notice provides guidance, in Q&A format, on the gap-period earnings requirement that applies to distributions of excess deferrals for taxable years beginning on or after January 1, 2007. It also addresses several distribution-related provisions of the Pension Protection Act of 2006 (PPA) that are effective in 2008, the most notable of which for 401(k) plans allows pre-tax accounts to be rolled over into Roth IRAs." (Employee Benefits Institute of America)
[Guidance Overview] Direct Rollover to Roth IRA
Excerpt: "The Pension Protection Act of 2006 permits the direct rollover of a qualified plan distributions to a Roth IRA for the first time in 2008. We had been awaiting IRS guidance on this transaction and have found that the IRS issued guidance recently by way of Publication 575." (McKay Hochman Co., Inc.)
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