Headlines about "Distributions - rollovers"

Gathered from the web by the editors at BenefitsLink.com.
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.)

[Opinion] Confusion on Rollovers of Retirement Funds
Excerpt: "So what's the rule on non-spouse rollovers from company plans under the Pension Protection Act (PPA) of 2006? Do company plans have to allow this or not? Who knows? It now appears that the non-spouse rollover provision will not be mandatory for 2008 until either the IRS or Congress issues official guidance otherwise. As a result, we must assume that the provision remains optional." (Financial Planning)

[Guidance Overview] How Is the 60 Days for IRA Rollovers Calculated?
Excerpt: "The 60-day period begins the day after the IRA owner receives the assets. An IRA owner is responsible for determining his/her receipt date. Whether he/she can exercise control of the distributed assets is a major factor is making this determination." (Wolters Kluwer Financial Services)

[Guidance Overview] Waiver of 60-day Rollover Requirement Denied Where Taxpayer Mistakenly Rolled Over Funds Into a Non-IRA Account
Excerpt: "In a private ruling, the IRS refused to grant a waiver of the 60-day rollover requirement where the taxpayer mistakenly rolled over a 401(k) plan distribution into a taxable account." (CCH Pension and Benefits)

Reporting Requirements for a Qualified HSA Funding Distributions
Excerpt: "The use of the term trustee-to-trustee transfer as it relates to qualified HSA funding distributions has created confusion for some owners of health savings account (HSA)s and IRAs, and even some custodians. This uncertainty stems from the fact that the term 'trustee-to-trustee transfer' is typically used by financial institutions to refer to a nonreportable movement of assets between retirement accounts of the same type, such as transfers between two traditional IRAs or between two Roth IRAs. And HSAs and IRAs are (obviously) two different types of accounts." (Appleby Retirement Dictionary)

[Opinion] American Benefits Council Letter on Direct Rollovers from Retirement Plans to Roth IRAs (PDF)
3 pages. Excerpt: "The Council understands that the Service is actively working on guidance that will address direct rollovers from plans to Roth IRAs. The Council looks forward to the guidance and appreciates that the Service is giving this issue attention, notwithstanding its significant workload. I am writing to highlight some of the issues that our members have identified. In this regard, the Council's members have already processed a significant number of direct rollovers from plans to Roth IRAs and, perhaps inevitably, a number of questions have arisen." (American Benefits Council)

There's a Big Business in Moving Clients to IRAs, Cerulli Suggests
Excerpt: "Cerulli data suggests that the total individual retirement account (IRA) market is growing rapidly at a five-year compound annual growth rate (CAGR) of 10%, with rollovers from 401(k) plans identified as the single largest source for this growth." (Investment Advisor)

[Guidance Overview] Plan Funds Rollover Chart, Updated January 2008 (PDF)
1 page. Excerpt: "This is a chart of what the Internal Revenue Service regards as permissible when rolling funds over from one type ofretirement account to another." (401khelpcenter.com)

[Guidance Overview] Pre-Tax Rollovers to Roth IRAs
Excerpt: "Beginning January 1, 2008, a plan participant may roll over directly from an 'eligible retirement plan' account to a Roth IRA, subject to the existing limitation on Roth IRA rollovers. An eligible retirement plan includes a qualified plan, a 403(b) plan, and a governmental 457(b) plan. This law change was part of the Pension Protection Act of 2006 ('PPA')." (SunGard Corbel LLC)

[Guidance Overview] Mandatory or Voluntary? Congress Creates More Confusion on the Non-Spouse Rollover Provision in PPA 2006
Excerpt: "We must assume that the non-spouse rollover provision remains optional for company plans, since there is no official guidance stating that this provision is mandatory, even though it is clear that this was the intent of Congress. What was originally intended to be expanded protection for those who need it most -- the children of plan participants -- has now been taken away -- AGAIN!" (Ed Slott, CPA)

Overview: Spouse Beneficiary Rules
Excerpt: "Under the original and final required minimum distribution regulations, the surviving spouse has always had special opportunities. The surviving spouse of a deceased participant may roll the funds into his or her own IRA or to a qualified plan, if the qualified plan accepts rollovers." (McKay Hochman Co., Inc.)

Chart: Portability Chart As of 2008
Excerpt: "What are the rollover rules after the Pension Protection Act (PPA) of 2008 . . . Updated 01/10/08" (McKay Hochman Co., Inc.)

Changes in Employee Benefits You Should Be Thinking About as 2007 becomes 2008
Discusses change in minimum vesting requirement, single-sum distributions from defined benefit plans, more. Excerpt: "In our field of law, the wonder and anticipation of the holidays are always joined by two other year-end phenomena: effective dates and deadlines. This eBenefits Alert discusses the most significant changes in the employee benefits arena that we should be thinking about as 2007 becomes 2008. Links to more detailed discussions are included for some topics." (Gray Plant Mooty)

November 2007 Employee Benefits Update from Reinhart Boerner (PDF)
9 pages. Nice overview for retirement and health plans, including selected compliance deadlines and a discussion of IRS guidance on yield curve and segment rates for calculating pension plan funding and lump sum interest rate. (Reinhart Boerner)

Pension Protection Act Provisions (And Other Changes) That Become Effective In 2008
Excerpt: "While many of the changes imposed by the PPA are effective as of the plan year beginning on or after January 1, 2008, conforming plan amendments are generally not required to be adopted prior to the plan year beginning on or after January 1, 2009. Accordingly, where applicable, plans should be operated in compliance with the requirements described below as of the first day of the plan year beginning on or after January 1, 2008." (Proskauer Rose LLP via Metropolitan Corporate Counsel)

Pass That Retirement Plan Money on to Heirs -- Several Red Flags to Watch For
Excerpt: "Practitioners need to be aware of some points that were overlooked or mischaracterized by many commentators. First, it is not really a rollover like a spouse can do. Rather, it is a transfer from one account to another that must remain titled in the name of the decedent. In January 2007, the IRS issued Notice 2007-07, stating that the account should be titled as 'Tom Smith as beneficiary of John Smith.' With a spousal rollover, title is in the name of the spouse, as if she had owned it all along." (Financial Advisor)

Retirees May Gain Advantage from Employer Stock Strategy
Excerpt: "Given the growth of employee-employer savings to meet retirement goals, it is common for employees to have a significant amount of employer stock in their qualified retirement plans. [At retirement], most are willing to directly roll over all qualified plan assets into a traditional individual retirement account. A traditional IRA rollover offers avoidance of an immediate income-tax consequence, the retiree remains in control of his or her retirement assets, and the benefits of tax deferral can continue. However, there may be another option available that should be considered, a type of combination approach." (HeraldNewsOnline.com)

Overview: Rollovers from Retirement Plans to Roth IRAs
Excerpt: "Thanks to the Pension Protection Act (PPA) of 2006, assets of certain eligible retirement plans (ERPs), including plans under Internal Revenue Code (IRC) Sections 401(a), 403(a) and (b), and 457(b), will be eligible for rollover to a Roth IRA. This provision is effective January 1, 2008. Note: This article does not address rollovers of designated Roth account assets from 401(k) or 403(b) plans." (Wolters Kluwer Financial Services)

Participant's Attempt to Recover Investment Losses for Rollover Delay Fails
Excerpt: "EBIA Comment: A little more communication and better planning possibly could have kept the parties out of court. For example, the participant was already age 60 when she retired and could have requested an age 59-1/2 withdrawal under the terms of the plan even before she severed employment -- a more effective approach, in light of the employer's desire to keep her available on a per diem basis. In the words of the court, the result was an 'unfortunate' delay and loss of earnings." (Employee Benefits Institute of America)

Overview: Nonspouse Beneficiary Rollover Document Change
Excerpt: "[I]n 2008, the IRS states that the PPA nonspouse beneficiary rollover rules will be required in the operation of qualified plans; and in 2009, it will be part of the required provisions to be included in the PPA plan document amendment." (McKay Hochman Co., Inc.)

Putting Stock in Your Employer Can Save on Taxes
Excerpt: "When it comes time for employees to leave the nest, most are willing to directly roll over all qualified plan assets into a traditional IRA. . . . However, there may be another option available that should be considered, a type of combination approach. This option involves distributing employer stock to the retiree and directly rolling over the remaining balance of the plan assets into a traditional IRA. This combination approach, though not for everyone, may have significant advantages." (Sun-Times News Group)

Suit Against Principal Alleges Misleading Mutual Fund Sales
Excerpt: "An Iowa plaintiffs' firm has filed suit in the S.D. Iowa against Principal Financial Group on behalf of participants in 401(k) plans to which Principal provided bundled services. The purported class action alleges that a Principal subsidiary advises participants in retirement plans serviced by Principal that they should rollover their retirement assets to a Principal IRA offering 'J Shares' class mutual funds." (ERISA Class Action Watch)

No Waiver of 60-Day Rollover Period Where Taxpayer Failed to Submit Substantiating Documentation
Excerpt: "In a private ruling, the IRS declined to waive the 60-day rollover requirement with respect to distributions from an individual retirement account (IRA) where the taxpayer failed to submit medical documentation substantiating the claim that his failure to make the rollover was due to medical impairment." (Wolters Kluwer Law & Business)

Principal Hit with IRA Rollover Suits
Excerpt: "Participants in two Principal Financial Group 401(k) plans have sued the Des Moines, Iowa-based plan provider, alleging it fraudulently convinced them to roll over their balances into a high-cost IRA." (PLANSPONSOR.com; free registration required)

Most Plan Sponsors Buy-In to Rollover Services and Products
Excerpt: "New research from LIMRA [Opportunities in the Rollover Market - Plan Sponsor Perspective] finds most plan sponsors have no preference what terminating participants do with their plan money, but most utilize services and products offered by providers for those participants that take distributions." (PLANSPONSOR.com; free registration required)

The links shown above have been gathered from the web by the editors at BenefitsLink.com. Each article's publisher is shown above in parentheses. Opinions expressed in each article are those of the article's publisher, not necessarily those of BenefitsLink.com, Inc. or any web site that displays these headlines in a "frame." You should contact the listed publisher for copyright information about any particular article or to inquire into the right to use the article in any manner.