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and here is the House version. $1200 for Joint Filers. No mention of two wage earners that I can see. Just approved in the House. Here HR 5140.

Treasury release on package See above for information on proposed package. I bet it changes before it becomes final.

For year of Death, His L/e. After year of death her life expectancy as Appleby stated above. If she doesn't need the money from the plans then that may be ok. If she needs the income, she should think about leaving the IRA account in his name for her benefit and taking death distributions from it based on her life expectancy without penalty. The qualified plan may or may not allow her to leave the benefit in the plan for the same purpose. Anything she rolls into her IRA is subject to penalty (under 59 1/2) unless there is an exception. She needs to explore these issues with her financial advisor. I just noticed you said she wants to roll over to her plan. Is her plan a qualified plan or IRA. If qualified plan, she may not have the ability to take any distributions. As I said above. Talk options over with advisor.

2007 1099r instx here.

See below: special IRS news letter. see new 5329 . Request a waiver of underdistribution penalty for reasonable cause without attaching a check for the penalty. IRS Special News Letter It appears that the Service has made official what a lot of individuals are doing anyway.

This seems to be a bug in the upgraded software... sigh... I will report it to the vendor and see if I can get it cleared up quickly! My browser is reporting 11 javascript errors just in this reply page. :-( Dave Baker Looks like its fixed now. Thanks for being on top of things as always

Part of th calculation estimates the value of the account after the withdrawal. If your using the RMD method the projected year end value will have a bearing on each years calculation. ( but its only an estimate. actual balances must be used) If you're using one of the other two methods which produce equal payments it mearly projects the annual balances for informational purposes only.

I agree that PPA would supercede as far as that is concerned but I still find it troublesome that the withholding rules were not ameded as well. I think we need to wait and see if the service rules on this issue. Is it better to interpert that the answer is yes unless it specifically says no or vice-versa???

I Disagree. See 1.402©(2) Q & A 1 & 2 Following. In particular A 2. States an IRA under 408(a). NOT 408A. Q-1: What is the rule regarding distributions that may be rolled over to an eligible retirement plan? A-1: (a) General rule. Under section 402©, as added by UCA, any portion of a distribution from a qualified plan that is an eligible rollover distribution described in section 402©(4) may be rolled over to an eligible retirement plan described in section 402©(8)(B). For purposes of section 402© and this section, a rollover is either a direct rollover as described in §1.401(a)(31)-1, Q&A-3 or a contribution of an eligible rollover distribution to an eligible retirement plan that satisfies the time period requirement in section 402©(3) and Q&A-11 of this section and the designation requirement described in Q&A-13 of this section. See Q&A-2 of this section for the definition of an eligible retirement plan and a qualified plan. (b) Related Internal Revenue Code provisions --(1) Direct rollover option. Section 401(a)(31), added by UCA, requires qualified plans to provide a distributee of an eligible rollover distribution the option to elect to have the distribution paid directly to an eligible retirement plan in a direct rollover. See §1.401(a)(31)-1 for further guidance concerning this direct rollover option. (2) Notice requirement. Section 402(f) requires the plan administrator of a qualified plan to provide, within a reasonable time before making an eligible rollover distribution, a written explanation to the distributee of the distributee's right to elect a direct rollover and the withholding consequences of not making that election. The explanation also is required to provide certain other relevant information relating to the taxation of distributions. See §1.402(f)-1 for guidance concerning the written explanation required under section 402(f). (3) Mandatory income tax withholding. If a distributee of an eligible rollover distribution does not elect to have the eligible rollover distribution paid directly from the plan to an eligible retirement plan in a direct rollover under section 401(a)(31), the eligible rollover distribution is subject to 20-percent income tax withholding under section 3405©. See §31.3405©-1 of this chapter for provisions relating to the withholding requirements applicable to eligible rollover distributions. (4) Section 403(b) annuities. See §1.403(b)-7(b) for guidance concerning the direct rollover requirements for distributions from annuities described in section 403(b). © Effective date --(1) Statutory effective date. Section 402©, added by UCA, applies to eligible rollover distributions made on or after January 1, 1993, even if the event giving rise to the distribution occurred on or before January 1, 1993 (e.g. termination of the employee's employment with the employer maintaining the plan before January 1, 1993), and even if the eligible rollover distribution is part of a series of payments that began before January 1, 1993. (2) Regulatory effective date. This section applies to any distribution made on or after October 19, 1995. For eligible rollover distributions made on or after January 1, 1993 and before October 19, 1995, §1.402©-2T (as it appeared in the April 1, 1995 edition of 26 CFR part 1), applies. However, for any distribution made on or after January 1, 1993 but before October 19, 1995, any or all of the provisions of this section may be substituted for the corresponding provisions of §1.402©-2T, if any. Q-2: What is an eligible retirement plan and a qualified plan? A-2: An eligible retirement plan, under section 402©(8)(B), means a qualified plan or an individual retirement plan. For purposes of section 402© and this section, a qualified plan is an employees' trust described in section 401(a) which is exempt from tax under section 501(a) or an annuity plan described in section 403(a). An individual retirement plan is an individual retirement account described in section 408(a) or an individual retirement annuity (other than an endowment contract) described in section 408(b).

Is it me or is everyone haveing troouble tracking the threads. When I hit the options button I'm sent to the bottom of the page. Can't set up tracking.

You must be so young Tom. http://en.wikipedia.org/wiki/Hit_the_Road_Jack See above and here

Correct. Your client has until 4-1-09 to take his 08 RMD but any distribution taken 1-1-08 or after counts towards 08. Distributions taken 1-1-09 thru 4-1-09 count toward any 08 distributions remaining then toward 09. Each year after 2009 distributions made in a calendar year count for that calender year. Distributions are generally taxable in the year taken even if for a prior year requirement. See IRS Pub 590 for charts and additional rules. 590 HERE Pub 590 is 2006 version for now. 07 version will be added some time soon. Complete regulations REGS HERE

She should seek the advice of an attorney for a properly executed disclaimer. If the son is the contingent then he would get 100%. You mentioned multiple children. The other children would not be entitled unless the contingent beneficiary disclaimed all or part. Then you would look to the plan language. It could get complicated. I suggest an attorney familiar with estates etc.

Generally speaking a beneficiary can disclaim benefits under IRC 2518 if the diclaimer is executed within 9 monts of death. The plan would then treat the beneficiary as predeceasing the account owner and the plan language would dictate.

See article about depression counseling in todays Benefits Link. The link wouldn't connect when I put it in the response but works from the main page.

We have often received these requests. We have a standard phrase that states these are plan assets and cannot be collaterlalized. Often times the lender is looking for the borrower's ability to save and manage his assets etc.

Traditional IRAs- NO Simple IRAs - Yes but must also take RMDs (This must be the only plan of the employer) Roth IRAs - Yes Simple 401(k)- Yes. A 701/2 participant may participate in most if not all qualified plans. ( I'm no expert on DBs.) As in all Qualified plans, the requirement for RMDs depends on the status of the participant. 5% Owner( by definition) or not.

Here is the site to check expected updates of Forms & Publications. You will see that the 5305 s for IRAs are scheduled for April of 09. I don't know if that has any effect on prototypes. HERE

Are they a common law employee or a 5% owner? If owner, then correct, they are required to take RMDs. If not an owner then RBD is 4/1 following later of the year they separate or attain 70.5.

The due date to remove an excess contribution from an IRA without penalty is the taxpayers filing date including extensions. No extension needed. See instructions for form 5329.

These charts are great. I like the format. John

SEE IRS NOTICE 98-4 98-4 See section "E" It appears that as long as there is a 60 day notice period for a new plan and the employees can choose to defer during that period then the Employer will be ok.

I want to thank everyone for the professional and highly interesting discussion.

The trustee must file form 990T. There is a $1,000 UBI threshold above which a filing is required. Depending on the state, there may be state filings required as well. You are correct that the IRA plan must pay the tax.

I can't address the termination of the plan, but SIMPLE IRA funds must remain pristine in a SIMPLE IRA Account. No other contributions of non-SIMPLE IRA funds are allowed. Funds from the terminated 401(k) plan could be rolled over into Traditional IRAs or other types of plans if the receiving plan language allowed. Funds from other SIMPLE IRA Accounts may be transferred or rolled over into a SIMPLE IRA however.