jevd

I Understand. This is something that was told to me many years ago by a so called expert. I have never seen any more on the issue. I will defer to the experts on this. Has anyone else come across this issue. Thanks

My understanding has been that if a SEP plan covers non owners then it is considered an employee benefit plan and has certain Title I coverage under ERISA however I've never seen any cases in regard to it.

Yes. The Employee's SEP is a traditional IRA that receives the employers SEP contributions. Check with the custodian/trustee as they may not want or allow traditional IRA contributions in the account. Also the client may want to consider that if they co-mingle the SEP plan employer contributions with other types of contributions as they may lose ERISA Title I protection from creditors. This would apply if the SEP plan is an ERISA plan. I realize that this is an untested issue but it is something to think about.

They don't appear to be posted yet. I checked the IRS web site and they are not there either although the full form & schedules with instx are there.

Client is deceased pre RBD. . Spouse age is unknown at this time.

I've checked past questions but none exactly like this, We have a Qualifying Trust named as the beneficiary of a qualified plan with a sole spouse beneficiary of the trust. I can see in the final regulations where the spouse in this instance may be used for determining the life expectancy of the living participant but no where do I find a direct authority for this spouse to Rollover the funds to an IRA or other qualified retirement plan. There is an implication in the preamble regarding IRA plans but nothing specific for QPs.. Any thoughts? Citations would be appreciated if any. Thanks JEVD

My understanding is if they are all of the same type, Qualified Plan etc you would aggregate the amounts and indicate the total amount taxable. If you have distributions from IRAs that were rolled over, you would look to the instructions for the previous line. I hope that helps. JVD

Without giving Tax-Advice, I'd check the 1040 instructions for line 16 on page 25 of the 2002 1040 instructions available at IRS.gov then go to forms & instructions.

Appleby, I couldn't agree with you more. More often than not, I get questions about what to do in this situation after someone has already completed a transaction that cannot be undone. If more people would seek the advice of an attorney or cpa BEFORE they commit to a transaction they would be much better off. I'd like to thank all of the regulars on this board for their enlightened opinions and information.

Same as above. Once the account is distributed, the beneficiary is done. No Rollover, No re-establishment of inherited IRA.

My understanding of the 87 regs is that the choice of joint or single life expectancy depends on the beneficiary status and relationship, not how the distribution is taken. What does matter is the election to recalculate or not recalculate the life expectancies. First, look to the plan language as to what is allowed and what the defaults are in regard to recalculation or non-recalculation. At the very least under the at least as rapidly rules, the surviving spouse should have had the ability to continue under the surviving spouse's single life expectancy. If the distribution was being made under the deceased's single life expectancy, then it is possiblle that enough was being distributed to satisfy the minimum. Again, check the plan language for restrictions and defaults. Some others on this site may have more details JVD

No, Simple IRAs must contain only Simple IRA contributions. The participants may rollover to traditional IRAs or another plan if available. See Publication 590.

In addition to last post. Spouse may also wait until client would have been 701/2 and start taking distributions based on his/her L.E. Sorry for typo above. s/b within. Again check plan for allowed options. and again good night.

Check your plan document first for any restriction on the benefit payout. The default under the regulations is the life expectancy payout withon 1 year of death. There is a grace period for this type of distribution if all previous distributions are made current by 12/31/2003. See Reg 1.401(a)(9)-1 Q2 (B)(2) The next choice is all amounts paid within 5 years. The Spouse may also roll the entire amount to an IRA or other plan of his/her own. See 1.401(a)(9)-3 for rules regarding death before RBD & also 1.401(a)(9)-5 for additional information. Merry Christmas to all and to all a GOOD NIGHT.

Contact the IRS. 1-800-829-3676. Be careful. If 250 forms or more, you are required to submit electronically. See Pub 1220 available at IRS website or you can order from forms line.

What State is your client in? If a community property state, he may need consent on a state level.

As Pax said. Only IRAs may be aggregated with each other after being separately calculated to determine the toal required distribution for the IRAs that an individual holds. See 1.408-8 Q&A 9 Inherited IRAs are a separate issue and may not be aggregated with other IRAs held by the same individual. Those may be aggregated separately but only if they are inherited from the same decedent. See Reg above. Each Qualified Plan must satisify the RMD on its own. No aggregation is allowed. Separate withdrawals for a PSP or MPP or 401(k). See REG 1.401(a)(9)-8 Q&A 1.

Yes, A conversion may take place but the RMD for the year must be taken first.