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It may be required in Community Property States. We provide a simple waiver with a caveat that clients should seek legal advice to determine if the waiver is satisfactory for their state. We do not police nor require the waiver.

See Pub 575 page 15 for Non-Periodic distributions from a Qualified Plan Here: PUB 575

As far as my understanding goes, subtitle B applies to subtitle A. In fact a recent Revenue Ruling allows a Qualified Disclaimer of retirement plan assets to stand even though the beneficiary disclaiming took distribution of the RMD for the year of death. That would imply that IRC Sec 2518 applies. I'm not an attorney or CPA. Maybe someone else can explain more fully.

A Qualified Disclaimer under IRC 2518 may work depending on the plan language regarding beneficiary hierarchy.

While gazing lovingly at Kay Edith came into view and I found to my dismay you can't have your Kay and Edith Too

I Agree with Janet & Masteff also and the following site is dedicated to this topic. 72(t).Net Check out the Q & A Portion. Similar questions have been asked.

See Publication 560: HERE SEPs are funded through Traditional IRAs which also accept regular IRA Annual Contributions. The deductibility of the contributions will depend upon the taxpayers filing status and Modified Adjusted Gross Income. As long as the self employed individual has enough income to support both contributions, he should not have a problem. Publication 590 regarding Traditional & Roth IRAs may be found: HERE You may also wish to consult the SIMPLE SEP & SARSEP Answer Book if its available to you for mor complete explanations.

I believe the IRA is treated as a separate entity here. The fact that the IRA pays the tax on the UBTI does not create a tax basis. It is simply an expense related to the IRA. If the account owner paid the tax outside of the IRA ( this is not allowed) then I might agree.

Yes. If you did not make any 2008 contribution and you are otherwise eligible, then you may make a contribution up until your tax filing deadline for 2008 ( no extensions) Also, the earnings are generally tax free if the account is open 5 years and you make a qualified withdrawal. age 59 1/2 Disabled Expenses related to a First Home ( $ 10,000 Max) Paid to your beneficiary at your death.

And many times can't spell. Many come in as "Per Stripes"

I agree with Appleby as long as you can get the trustee to report the removal of the current year's contribution as an excess. If not then as Ricky Ricardo would say "Lucy, you got some splaining to do"

In my opinion, once the 2008 contribution was deposited, it would also be subject to the 60 day re-deposit/rollover rule. The withdrawal of the 2008 amount if any within the 2008 contribution period does not constitute a reversal of the contribution which could be deposited at a later date beyond the 60 days but within the 2008 contribution period. (no do overs) Example: 2008 contribution deposited January 10 2008. Withdrawn as part of the $15,000 withdrawal mentioned above. It is included in the amount that must be re-deposited within 60 days to be a valid rollover. The contribution for 2008 will be reported as a 2008 contribution on form 5498 for 2008 sent by May of 2009. The withdrawl of the $ 15,000 will be reported as a 2008 distribution on form 1099R for 2008 reported in January of 2009. Any rollover of funds within the 60 Day Period will be reported on the 2008 form 5498 as well.

I agree with above. Especially maxing out any 401(k) contributions and more so if there is an employer match. Don't leave any $ on the table.

One other option. As stated above, income limits for conversions are eliminated in 2010. You both could make non-deductible Traditional contributions now until 2010 and then convert to Roth. Also you will have the choice to spread the taxes over two years at that time.

My understanding is that it applies to the tax only not the penalty as it refers to 408(d)(1)

The following appears as the instruction for Box 2 of the 2008 5498: Box 2. Rollover Contributions Enter any rollover contributions to any IRA received by you during 2008. Include a direct rollover from a qualified plan (including a governmental section 457(b) plan) or section 403(b) plan. Also include any qualified rollover contribution, as defined in section 408A(e), from an eligible retirement plan (other than an IRA) to a Roth IRA. For the rollover of property, enter the FMV of the property on the date you receive it. This value may be different from the value of the property on the date it was distributed to the participant. It appears that direct Rollovers to a Roth IRA from 401(a), 403(a) & (b) as well as 457(b) plans are reported in the Rollover Box of the Roth 5498 and the Roth IRA box is checked in Box 7 instead of reporting these transactions as conversions in box 3. Is this a correct interpretation?

Naturally, they cannot come up with the funds. My thinking is the only way to get this done is by the custodian issuing a second check to the participant's rollover. Otherwise the 60 days will be long past by the time they get their tax refund. Is there no relief from withholding errors in other than the current tax year? The only way I know is to get a short term loan and do it before the 60 Days are up then repay with the tax return to the extent possible. You say they can't come up with the funds. If not their error, then whose. Would the guilty party like to make the loan? Is there a potential suit over the matter? Also there may be an extension of the 60 day period but it would take a PLR if not on the list of automatic exemptions.

Also Here Uncle Fed 2007 1099R Instx Sorry about previous post.

Denise, The 2007 1220 is here 2007 1220 It has the instrux for 1099Rs and 5498s Oops My Error. Only General not specific instructions

Thanks Mike

A Qualified Plan must be set up by 12/31 of the effective year for a calendar year plan. Consider a SEP which may be set up by your Tax filing deadline including extensions. You may make a 2007 contribution up to the limits of 25% or $45,000 for 2007. You didn't state if you are incorporated or self employed. Self employeds have a special calculation. You also didn't state if you have employees. Refer to IRS Publication 560 for additional information. Here You also could adopt a Qualified plan for 2008 and transfer your Sep Contribution into the QP if the plan allows and will account for it. Consult with a Pension Practitioner for additional information.

Say Amen to that. In my 30+ years in this business, the most irritating issue is when someone dies and their is a beneficiary dispute because someone got married, lost a spouse, divorced or had additinal children and didn't adjust their beneficiary designation to consider the change. Please Please, all of you financial planners & advisors out there and anyone else in these situations, have your clients review their beneficiary designations and for that matter all of their financial plans including wills and trusts on a regular basis to be sure they're up to date. i'll get off my pulpit now.

See Publication 590 below. Tables are in the back. Calculation instructions are in Chapter 1. Uniform Table applies if less than ten years difference in age. Pub 590 Age 74- 23.8 yrs age 77 21.2 yrs From Uniform Table

Contact Sal Tripodi or check his website Sal's Website

Link didn't quite work... go here: http://thomas.loc.gov/home/c110query.html Under "enter search" switch "word/phrase" to "bill number" and enter HR 5140 Sorry. It must have been a temporary link.