Leaderboard

RMDs are required, not an option. Send a check with the 10%taxes deducted. Forget the package and signing now that you know her address, send the distribution, request copy of check after being cashed to see if it is her signature.

You may be right! I'm in an uncharacteristically benevolent mood right now, so my cynical side (which normally has the upper hand) is temporarily repressed. As to the south Florida land, I think I already bought that - according to my deed, I apparently own all the land upon which Walt Disney World is built. With that and my stock in "I admire Congress" Buttons Manufacturing Corporation, I can retire in style...

Exactly, it's always been: don't let your plans run around out there without any clothes on (the IRS D letter). Now we'll have to keep our eyes closed when we see those plans. Edited to say I was replying to ETA.

Seriously?

As I understand it a qualified plan is a plan has adopted all provisions required for compliance with the rules of IRC 401a . It is not required that the plan receive a favorable determination letter from the IRS although tax advisors routinely submitted individually designed plans to obtain the pro forma determination letter to have if the IRS audited the plan. So now individually designed plans will no longer be able to obtain a determination letter. Will IRS now audit individually designed plans to see if there is a ding which can result in a revenue gain to the govt? IRS is eliminating determination process for individual plans to reduce costs because every year congress reduces its budget by 3% as payback for the Lois Lerner fiasco. Attitude of congress is that IRS needs less money each year because more tax returns are filed electronically which requires fewer employees. IRS staff has been reduced by 20% in last 5 years.

In my world, a fee is something that affects gains and losses, so it would come out of the gain. That, IMO, would be "right." But I can see it being problematic for a recordkeeper who needs to determine the gain and then process the distribution. But as Lou S. notes the basis is what is tracked, and it is determined by the actual net contributions so I think generally it will be reported the "right" way.

A fee affects the g/(l) not the ROTH basis which is the actual amount of ROTH contributions and does not change. The participants basis is $1,000 because that was the amount of AFTER TAX ROTH deposits that they made which are recoverable tax free.

Its been a while since I checked but I thought that a grantor trust is considered to be the alter ego of the creator of the trust and for tax purposes all income is taxed to the grantor. There is no separate tax entity in a grantor trust.