jevd

First of all be careful and get some advice from an accountant or tax professional. It sounds as if you are taking distributions of substantially equal payments under an exception in the Internal Revenue Code. Code section 72(t)(2)(A)(4)If you add or subtract to/from the fund you may set yourself up for some harsh penalties. Generally you can move the funds from one trustee to another via a trustee to trustee transfer but you must be careful not to move it through a distribution and rollover as that can bust the plan. As you didn't give us a lot of information I can only guess this is the case. You need to talk to a professional that is familiar with this procedure. There is a website dedicated to this area of the Internal Revenue code. It is www.72t.net Also Revenue Ruling 2002-62 will give you more information as well as manay Private Letter Rulings on the subject.

After tax filing, earnings are not removed. See Pub 590 for complete explanation or IRC 408(d)(5) Also see 408(A)(a) which states that Roth IRAs are treated as traditional IRAs unless otherwise stated in 408(A). 408(A) only mentions withdrawal of excess Roth contributions prior to tax filing date including extensions. PUB 590 is not as clear as it could be regarding corrections after tax filing but does state that contributions may be applied to the following year if available as stated above.

The amount of the distribution from wilma's account should include earnings as this is the return of an excess rollover. It should be coded on the 1099R as an 8. Rollover corrected in the year of excess. Wilma's RMD for 07 should be coded as normal distribution code 7. I believe this applies to Qualified Plans as well as IRAs but now I'm not sure. Anyone familiar with excess rollovers to Qualified Plans?

Let me be the first to congratulate the RedSox Nation. Great Series. Not only are the guys a great team but a class act as well. Congratulations to all.

Former Cubs fan? No. Crosseyed Optimist!! I also Bet on the Mets to win a World Series within 5 years in 1967 and was around to collect the bet in 69.

Wait till the fourth inning when they're going for the Oxygen bottle. All is not lost. Just 2 games. Were just getting warmed up. Have no fear.

Just tell them to bring the 0xygen bottles.

Rockies Tickets Sold out in 2 1/2 HRs. After Yesterday's fiasco. Lot of Purple People think the scalpers got them. Don't know what really happened but the stands will be full. I just hope more Purple than Red. We're Ready. See you tomorrow night.

When did the rollover occur? IRC 408(d)(4) & (5) address return of excess contributions before & after tax filing deadlines. Code 8 & P will indicate on the 1099R that there has been a return of excess. There is also an exception for bad information given by an employer in a rollover situation.[ 408(d)(5)(B)] When did the rollover occur and for how much? The exces rollover may be reduced by considering aportion of it as a traditional IRA contribution for the year if eligible. More Facts Needed. Also, if returned by tax filing date including extensions, only earnings within the IRA will be taxed. Penalized if under 59 1/2.

You've got to understand Denver Weather in the Fall. Snow today 70 Tomorrow. Prediction for next weekend. Fair weather. Rockies in 4.

I play "An Harmonica". Does that count??

Yes, That's the RBD but the distribution is for 2007. SEE the following: 1.408-8 Q & A 10.4 10.4 Q-4. What portion of a distribution from an IRA is not eligible for rollover because the amount is a required minimum distribution? A-4. The portion of a distribution that is a required minimum distribution from an IRA and thus not eligible for rollover is determined in the same manner as provided in A-7 of §1.402©-2 for distributions from qualified plans. For example, if a minimum distribution is required under section 401(a)(9) for a calendar year, an amount distributed during a calendar year from an IRA is treated as a required minimum distribution under section 401(a)(9) to the extent that the total required minimum distribution for the year under section 401(a)(9) for that IRA has not been satisfied. This requirement may be satisfied by a distribution from the IRA or, as permitted under A-9 of this section, from another IRA. Full Regulations Here: Regulations

The first distribution taken in a year IN WHICH you turn age 70 1/2 is considered an RMD. The amount of the RMD would be considered an inneligible Rollover. Must be removed unless he can consider it a contribution for Profit Sharing Purposes. Is Sam a self-employed owner? Can the excess rollover be considered a plan contribution?

I understand. Maybe Gary or someone else can shed some light on the matter.

I have already looked at that. It only refers to USERRA, which was part of GUST, of course, but is that the only piece of GUST legislation that is applicable? Furthermore, that Q&A is only dealing with whether plans had to be further amended for the final regs under USERRA. I believe if there was any requirement to re-adopt for GUST, Gary Lesser and Sue Diehl would have mentioned it. Ihave great respect for both of them.

Check out Q & A 5-95 in the Simple Sep SARSEP Answer Book.

The following information may be of use, however the actual distribution is the responsibility of the account owner. Notice 2003-3, I.R.B. 2003-2, January 13, 2003. Individual retirement accounts (IRAs): Trustees: Minimum distributions: Reporting requirements The IRS has clarified that IRA trustees can satisfy minimum distribution reporting requirements with regard to IRA owners by using one or both of two alternatives set forth in IRS Notice 2002-27, which provided that statements furnished to IRA owners must contain either the required minimum distribution amount and the date by which it must be distributed or a statement providing that a minimum distribution is required for the calendar year, the date by which it must be distributed, and an offer to calculate the amount of the distribution. Also, for 2003, trustees may transmit required minimum distribution reporting statements electronically, but only if the electronic transmission procedures for Form W-2 (Wage and Tax Statement) are satisfied.

This town went crazy last night. The brooms were out in force. Too bad they didn't use them to sweep the streets too. Sorry D Backs. It was our year. Don't know who to root for in the east. I've been a Yankee fan as a child but then I grew up and have been a Sox fan because I've been an under dog too. Good luck to both teams back there. We'll be ready. JEVD Denver

One more game to go and then Just 4 of 7 . After 20 of 21 should be a slam dunk

I saw that, but am not certain that it applies. Any other opinions? I've found out that it is the same employer and they want to correct by reversing the deposit and returning the funds to the 401(k). Will a self-correction apply

A rollover occured from a regular 401(k) to a SIMPLE IRA this year. I've check the search function but can't find a specific case. Facts: Rollover occured this year, more than 60 days ago, but within 60 days of distribution. Corrected to state it was a direct rollover. Funds were deposited to a SIMPLE IRA Possible Solutions 1. Return as an Excess plus earnings. Client is out of luck for IRA rollover. 2. Re-characterize client reports as being rolled over to traditional IRA. 3. EPCRS and hope for the best. Does it matter who the Employer is for the Simple?

I believe the excess SEP contribution is now considered a Traditional IRA contribution and a 6% penalty applies for all years the excess amount was not used up under the IRA contribution limits. The 10% penalty for non-deductible contributions therefore will only apply for the first year (i think) so 16% for first year and 6% for each year thereafter until used up by Traditional IRA limits.

I may be living a sheltered life, but I just heard this one. Mahatma Gandhi, as you know, walked barefoot most of the time, which produced as impressive set of calluses on his feet. he also ate very little, which made him rather frail, and with his odd diet, he suffered from bad breath. What did this make him. A super callused fragile mystic hexed by halitosis!

Weve been getting them also. Mostly on EZs but thats the majority of our filings. No idea on how to handle except case by case.

Did you file form 8606 for the year of the distribution. The form will determine the basis for you. Also, how old are you? Was this a qualified Roth distribution?