jevd

Hello all. I haven't been out here for years. My job of the last 9 years has made it difficult to stay in touch. As of March 31, I have been retired after being in the industry since 1970 . I was on a securities settlement desk when the DOW first hit 1000. I have thoroughly enjoyed my career and have seen many changes. I've been privileged to know all of you through these message boards and all of you have been extroardinarily help in my pursuit of knowledge. Stay healthy in this stressful time. May God bless you all.

Agreed. Needed a little backup for my opinion. Thanks

I'm looking forward to 9/1/18 for my first maximum SS check. I'v been in this industry too long. I'm the only person in my office who has a pre-erisa break in service from a former job. All you folks are youngins. Bless you all.

IF a participant's termination date is 12/31/17 but he is employed on that date , is his first calendar year for rmd 2017 or 2018? Seems like a simple answer but we have bot opinions in the office. PPT is 70 1/2 in 2017

Thanks. As I thought about non-governmental 457 plans. Are non-qualified deferred comp Top Hat plans exempt from RMD's as they are generally non-funded.

I know that Government 457(b) plans are subject to RMDs. I'm unsure if Non-governmental 457plans and non-qualified deferred comp plans are subject to these rules. I believe not but have not been involved in these plans for a long time. Can someone sort these out for me? Thanks

In House answer provided. This is our term for the required annual withholding notice. Thanks for those that may be checking jevd

I ran across a new term today and am puzzled as to what it is. What is a "TEFRA CARD" and how does it apply to plans? Thanks

Check IRS.gov for instructions to the 1099-R. The reason codes and explanations are listed there

Congrats. I'm back after a long hiatus but my 70 th B.D.is a mere 456 days and I'll pull the plug on SS and find my 4th career.

Thanks. Its been so long. I was in Compliance for quite a few years and now just answering the phone in a call center til I retire ( 458 days) but whose counting.

I'm back after a loooooong time. jevd If an individual has multiple plans from different employers, does the $ 50,000 overall loan limitation apply to each plan or to the individual. IRS website seems to indicate it is a plan limitation & not an individual limitation.

UCA '92. Funds needed for unemployment benefits.

You're looking at taxable income in the year distributed, a 10 % penalty in the year distributed if under 59 1/2 and the 6% excess for each year it was left in the account. Because the excess was over the contribution limit the withdrawal is taxable. There is an exception if the error was due to incorrect information received from an employer in a Rollover transaction. You may be able to reduce some of the penalty by forwarding some of the contributions into each year as non-deductible. I suggest you consult with a CPA that understands the implications of the transactions as it may require amended returns . Edited for duplicate language

IRA Contribution is still allowed. Deduction may or may not be depending on AGI.

Gary, I heard of a similar situation and questioned it and was told that the particular institution had received an ok from IRS but details were not given. I'm back but have limited access due to call center job. JEVD

If I were in that position, I would terminate my SEP for 2011 by notifying the trustee/custodian that no further contributions would be made to the SEP. P.S. Hi All. I'm back. I've been on the sidelines for seven months. A victim of the current economy and have been busy trying to correct it. I may just have solved that problem but too soon to tell. Regards to all. JEVD Making the complex understandable.

The amounts went directly from a QP to a traditional IRA, then to the Roth. The transaction was years ago and outside the window of opportunity to recharacterize it, but not so long ago that it is protected by the SOL. The retiree is well over 59-1/2. Is it possible to consider a portion of it as an eligible Roth annual contribution for that year and subsequent years and only pay the excess contribution penalities? If the reason was a MAGI issue, then the only possibility may be to remove it as an excess after tax filing date. Penalties would still be involved.

What is the reason for the failed conversion? How long ago was the transaction? What was the type of the original account? Traditional IRA , Qualified Plan etc? How old is the client? Under/Over 59 1/2? If a traditional IRA, then re-characterize back to original IRA possibly. Client may simply want to withdraw the account rather than re-characterize.

Generally speaking if you expect your withholding from employment and or pension to be less than 90% of your tax liability, the IRS would require you to pay estimated tax. See Pub 17 Chapter 4 Here And PUB 505 Here

I'm thankful for all of you out there who have given your thoughtful answers to my questions. I'm especially thankful for Dave for Benefits Link in general and wish all of you a very Happy Thanksgiving.

But see if taxes are paid outside Roth IRA See below from final Roth Regs 1.408A-4 Q-7. What are the tax consequences when an amount is converted to a Roth IRA? A-7. (a) Any amount that is converted to a Roth IRA is includible in gross income as a distribution according to the rules of section 408(d)(1) and (2) for the taxable year in which the amount is distributed or transferred from the traditional IRA. Thus, any portion of the distribution or transfer that is treated as a return of basis under section 408(d)(1) and (2) is not includible in gross income as a result of the conversion. (b) The 10-percent additional tax under section 72(t) generally does not apply to the taxable conversion amount. But see §1.408A-6 A-5 for circumstances under which the taxable conversion amount would be subject to the additional tax under section 72(t). © Pursuant to section 408A(e), a conversion is not treated as a rollover for purposes of the one-rollover-per-year rule of section 408(d)(3)(B).

TRY THIS LINK Search SEPS ERISA on all boards. There's a bunch of threads

It's been my experience that IRAs generally should only be escheated after age 70 1/2 (mandatory distributable event) + x years of inactivity & client contact. You might ask the company's policy on escheatment. Is it possible that the account is set up under your parents SSN or other vesting? Do you have an old statement that could help in the location of the account? Where did you ever get that idea? IRAs are subject to state laws on abandoned property which allow property to be escheated after a number of years of no activity by the owner and/or failure of the owner to contact the institution. Escheat does not apply to qualified plans subject to ERISA for which state laws on escheat are preempted. Example: Ala. Code, Sec. 35-12-72 (a)(6): “Property in an IRA, qualified defined benefit plan, or other account or plan that is qualified for tax deferral under the income tax laws of the U.S., three years after the earlier of: (a) the date of the distribution or attempted distribution of the property, (b) the date of the required distribution as stated in the plan or trust agreement governing the plan, or © the date, if determinable by the holder, specified in the income tax laws of the U.S. by which distribution of the property must begin in order to avoid a tax penalty.“ Ill. Compiled Stat. Ann., Sec. 765 ILCS 1025/2(e): "Property of any kind held in an IRAis not presumed abandoned earlier than 5 years after the owner attains the age at which distributions from the accountbecome mandatory under law." The above from an outline from the NAUPA National Association of Unclaimed Property Administrators. Apparently several states have similar statutes. I received this opinion many years ago from an attorney who advised a previous employer. I haven't researched this issue in many years. I agree that each states unclaimed property statutes wouild apply. Edit below to add california Civil Procedure Code: 1518. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, and the income or increment on such tangible or intangible property, held in a fiduciary capacity for the benefit of another person escheats to this state if after it becomes payable or distributable, the owner has not, within a period of three years, increased or decreased the principal, accepted payment of principal or income, corresponded in writing concerning the property, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary. (b) Funds in an individual retirement account or a retirement plan for self-employed individuals or similar account or plan established pursuant to the internal revenue laws of the United States or of this state are not payable or distributable within the meaning of subdivision (a) unless, under the terms of the account or plan, distribution of all or part of the funds would then be mandatory. Oregon Statute Below: 98.332 Property held by fiduciaries. (1) All intangible personal property and any income or increment thereon, held in a fiduciary capacity is presumed abandoned unless the owner has, within two years after it becomes payable or distributable, increased or decreased the principal, accepted payment of principal or income, corresponded in writing concerning the property, or otherwise indicated an interest as evidenced by a memorandum on file with the fiduciary. (2) Funds in an individual retirement account or a retirement plan or a similar account or plan established under the Internal Revenue laws of the United States are not payable or distributable within the meaning of subsection (1) of this section unless, under the terms of the account or plan, distribution of all or part of the funds would then be mandatory. [1957 c.670 §9; 1983 c.716 §5; 2003 c.580 §1]

It's been my experience that IRAs generally should only be escheated after age 70 1/2 (mandatory distributable event) + x years of inactivity & client contact. You might ask the company's policy on escheatment. Is it possible that the account is set up under your parents SSN or other vesting? Do you have an old statement that could help in the location of the account?