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There are no required minimum withdrawals from a Roth IRA while the account owner is alive. Minimums are required by beneficiaries based on the Regulations for required distributions when death occurs before Required Beginning Date (RBD). RBD for IRAs is the April First in the year following the year age 70 1/2 is attained. See Chapter 2 IRS PUB 590 Pub 590

Then its treated as a regular Roth excess contribution returned after tax filing. A 6% excise tax is due for each year (File form 5329) and no earnings attributed are removed. In addition, for the year of conversion, there may be a 10% premature distribution penalty ( also form 5329)if the account owner was under 59 1/2. Depending on the state (California?) there may also be a state penalty. Get thee client to an accountant.

It must be handled as a re-characterization and completed by the account owner's tax filing date for the tax year of the original conversion including extensions. The account must have filed timely or received an extension to receive the extended date for the re-characterization. The principal amount of the conversion plus attributed earnings must be moved to a Traditional IRA from the Roth. Earnings are calculated in the same manner as an excess contribution. No cherry picking assets. It's generally easier if the conversion had been made to a separate Roth IRA then you just move the entire account back to a Traditional IRA. See Pub 590 for further explanation. Here See pages 30 and 66.

Roth Contributions are after tax contributions. When withdrawn there is no tax. As you are under 59 1/2 there would be tax on the earnings and a 10% federal premature distribution penalty only on the earnings, however if there were no earnings there would be no tax and no penalty. The only exception to this is if the contributions were from a recent conversion ( within the last 5 years) and then there would be a penalty on both principal and earnings.. See Pub 590 Chapter 2 for information on ROTH IRAs PUB 590 Here

How were the employee SIMPLE IRA accounts set up? Were they established at the DFI or elsewhere? Where have deposits been made if not to an account at the DFI? Who set up the accounts at the DFI?

This would require a new document so IMHO this is an amendment that must wait until January. Nothing prevents the clients from transferring all or a portion of their SIMPLE funds to another custodian/trustee in the interim however some fees may apply.

Fees are a matter of the contractual agreement you signed when you set up the account. Generally speaking you may withdraw contributions (basis) from a ROTH IRA without taxation. Any earnings are subject to taxation and because your under 59 1/2 subject to a Federal 10% premature distribution penalty. Some states also have additional penalities ( CA. for one) If you are in a bank CD, early withdrawal penalities may apply which would reduce the taxable income. You did not state what type of investments you have or the type of organization you set your plan up with. You may be able to negotiate fees or make arrangements with the individual advisor who may have sold you the plan. Additional information may be found in IRS Pub 590 Here

From Answer Book Series: TREATISE, 401(k)-ANSWER-BOOK, Q 22:11 What is a qualifying distribution from a Roth IRA? What is a qualifying distribution from a Roth IRA? Qualifying distributions from Roth IRAs are withdrawals of earnings made after a five-year period, beginning with the first year for which a Roth IRA contribution was made, and must satisfy at least one of the following conditions: 1. The IRA owner is age 591/2 or older; 2. The IRA owner has died or become disabled; or 3. To pay for certain first-time home buyer expenses up to a lifetime limit of $10,000. The IRS Restructuring and Reform Act of 1998 [Pub. L. No. 105-206, 112 Stat. 685] (IRRA) clarified that there is only one five-year holding period for all Roth IRAs owned by any one taxpayer. IRRA also provides that if a distribution is made from a Roth IRA during this five-year holding period and the Roth IRA contained both contributions and conversion amounts, the distribution is to be treated as coming first from original Roth IRA contribution amounts, then from conversion amounts (in the order converted and beginning with amounts already included in income), and last from earnings. [i.R.C. § 408A(d)(4)] For purposes of these ordering rules, all Roth IRAs, whether or not maintained in separate accounts, will be considered a single Roth IRA. Any conversion amounts thus withdrawn will be subject to the 10 percent early withdrawal penalty unless one of the exceptions under Internal Revenue Code (Code) Section 72(t) applies (e.g., over age 591/2 ). Under the rules, recordkeeping for Roth IRAs will be much simpler if conversion amounts and original Roth IRA contribution amounts are not placed in the same Roth IRA account. This closes retroactively the loophole whereby the 10 percent early withdrawal tax on eligible rollover distributions could be avoided by rolling into a traditional IRA, converting to a Roth IRA, and then immediately withdrawing the converted amount. Emphasis added by poster.

Post Erisa legislation Link See above link for Post ERISA Legislation. AND HERE Also, if you just google "History of Retirement Plans" you will get a number of useful hits.

Me Too. Every time I see it. Hopefully Rags to Riches. But she has been rich all her life but probably didn't realize it.

I'm sure you have all seen this but for those who have not, it is the most inspiring thing I have heard in a long time. A perfect example of don't judge a book by its cover. Cynics beware. Susan Boyle

Correct

Correct.

That's my understanding. Any required distribution for 2009 including those required of beneficiaries are suspended. That includes spouse and non-spouse beneficiaies. I believe that's what the OP meant. Sieve, Are our assumptions correct?

Yes. See Rev Notice 2009-9 HERE

Payments to beneficiaries fall under the Required Distribution regulations and have been suspended for 2009. It does not matter that the parents had not reached 70 1/2 at the time of their death. The Worker, Retiree, and Employer Recovery Act of 2008 suspended all 2009 required distributions including those to beneficiaries. See also IRS Notice 2009-9 HERE

I can't give you a cite and I'm no expert in the matter, but in my opinion, it would be the difference between the strike price and the current price. I have also seen them carried at -0- or nominal value.

See instructions to Employer on form 5305-SEP HERE

Your welcome. Does your software have a means to report it correctly? I'd ask for a refund if it doesn't. Regards & Good Luck

John G is correct. See instructions for line 15A & 15 B on page 23 of 1040 instx. 1040 Instx The instructions will refer you to form 8606 8606 Instx Form 8606

I don't know Tax Cut but you should be able to indicate the distribution was from a Roth IRA. That should briing up a form 8606 to complete which should then indicate no tax on the distribution. If it doesn't then you should contact "Tax Cut" for instructions. Anyone out there use this software and have any idea how to help this poster?

Check the software your using to be sure you indicated the distribution was from a Roth IRA. Check instructions for form 8606 also. The software should pick that up if you indicate the distribution is from a Roth IRA. I'm not familiar with Tax cut as I use a CPA and don't mess with it myself. Also, if the Roth was funded by a conversion that is less than five years old, then you may be subject to penalties even though tax was already paid at conversion.

Roth IRA or Traditional IRA ? You may only do that in a Roth IRA.

No earned income then no contribution. It must be removed as an excess. Roth contributions require earned income.

Dave, Need more information. Was there a Sch C profit? Was there any earned income from other sources? She may be able to re-characterize the contribution as a Traditional Contribution. Deductibility will depend on earned income. If none, then she can remove as an excess. The fact that she has no employees does not preclude a SEP contribution if earned income exists.