joel

Under current IRS notice/ruling the participant can rollover the earnings portion to a pre-tax IRA and the contributions portion to an Roth IRA. These notices/rulings were issued about 4 years ago, 51 years after the SACT was enacted. Would you disallow such rollovers because the ruling was issued way after the SACT began? If these two rollover transactions are proper, why is it improper to roll the entire account balance into a Roth IRA?

The after-tax Plan was implemented to supplement the DB pensions accrued by NJ public employees. Does this make it a qualified plan? If it is a qualified plan do the after-tax contributions make it a Roth or must the Plan Document state that it is a Roth?

New Jersey established more that a half century ago a Supplemental Annuity Collective (SACT). During this period SACT has offered two plans: A 403(b) arrangement for qualified employees and an after-tax arrangement for all employees, including qualifiers for the pre-tax 403(b). The investment menu is the same for each plan. Q.: A retiree has contributed to the after-tax plan for 35 years and wants to effectuate a rollover of his entire balance to a Roth IRA----is this a permissible transaction.

I am in full agreement. The Trust also has a pre-tax 403(b) component for the public education community. Why can't the after-tax plan be treated as a Roth?

Every public employee in the State of New Jersey may make voluntary after-tax contributions to the NJ Supplemental Annuity Collective Trust (SACT -Regular Plan). Let's assume one has contributed for 40 years and is about to retire. May the account balance be rolled over to a Roth IRA?

Participants in government 457(b) plans must sever employment before they can make withdrawals from their accounts. Q.: Does the soon-to-be new law allow for in-service withdrawals upon attainment of age 59.5?

How much money are we talking about

Are fiduciary standards adhered to when a plan decides not to offer a Roth Deferral Alternative?

IT IS THE ESOP FUND--AFTER-TAX MONEY WAS USED TO PURCHASE SHARES. HIS BASIS IS $121,000. THE PLAN ALLOWS FOR IN-KIND DISTRIBUTIONS

Client has an after tax value of $121,000 in employer stock. This amount is a portion of his 401(k) account. Can the shares be rolled into a Roth IRA or only the liquidated amount?

Client participates in employer 401(k) plan. His tax-free basis in company stock is worth$121,000. May this amount be rolled over to a Roth IRA?

What is the objective of a Wellcare 401(k) plan?

Is the taxpayer exempt from the 10 percent penalty tax when making a pre-age 59.5 withdrawal from the annuity contract?

My non-deductible IRA has a balance of $200,000. I wish to do a Direct Rollover as follows: The $70,000 of non-deductible contributions will go into a Roth IRA and the $130,000 of earnings will go into a Traditional IRA. Is this permissible? Thanks, JOEL

During the period of noncompliance must the $20,000 limit on rollovers be suspended or can they continue to be made?

In the auditor's opinion the Plan was unqualified for the Plan year ended on 9/30/13. The $2500 monthly payment may be rolled over to an IRA provided the account is depleted in 10 years or less. This rule discriminates against those that have higher balances. Thus, participants with account balances under $300,000 qualify for rollover while those with larger larger balances do not. No wonder the auditor found the Plan to be unqualified.

This is the Annuity Plan of Local 3 of the International Brotherhood of Electrical Workers (IBEW).

Life expectancies should replace the fixed amount distribution scheme. It is unreasonable for all to collect $2500 per month; regardless of age, life expectancy and account balance. This Plan Document is ancient.

This fixed dollar payment ($2,500) lasts until the depletion of the account or death which ever comes first. Should there be a balance the named beneficiary continues to receive the $2500 per month until the account is depleted. The payout amount is NOT based on the life expectancy of the annuitant. Thus, a 55 year old with $200,000 gets the same fixed dollar monthly payment as a 65 year old with $400,000. The payout must reflect the RMD tables upon attainment of age 70.5---otherwise life expectancy does not impact the amount of the monthly payment----everyone is treated the same. With that said, the individual may elect a SLA or a QJSA as an alternative to the above.

So the Plan's Board of Trustees need not offer other payout options if the PD stipulates that only a fixed monthly payment is mandated. Is my understanding correct?

It is a DC ERISA Plan.

The Trustees mandate only a fixed dollar monthly payout option. Q.: Under ERISA Is the Board of Trustees required to make available other payout options?

My two cents: You, my friend, should be on stage.

mjb---If you don't have a answer, say nothing. Your sarcasm, per usual, is noted!

I pod: You are right on.