Appleby

Wouldn’t it be safer to take the RMD, and if no RMD is required then rollover the amount within 60-days? The amount should be rollover if it is not an RMD, unless the relief comes with a clause that says”…but if you already withdrew your RMD amount, you are SOL”.

Don't you hate those people who kill a joke with questions? Well, me too, but I gotta ask. Is this as in Robert Burns and these men were seriously taken to mimicking his style?

To add to John's response...one supposed advantage of converting to separate Roth IRAs, is that it makes it easier to recharacterize a portion of the conversion. This is because you may not need to run a calculation for the NIA. Example: If you convert 50% to Roth IRA # 1 and 50% to Roth IRA #2, and you decide that you want to recharacterize only 50% of your conversion, then you would recharacterize the entire balance of one of the Roth IRAs and that would be that. But if you converted 100% to Roth IRA #1 and decided you want to recharacterize 50% of the conversion, you would need to compute the NIA, and increase/decrease the 50% by the NIA in order to determine the actual dollar value of the recharacterization. It is for this reason that some thinks it’s a good idea to keep the conversion amounts separate until the deadline for recharacterization has passed, at which point they can be combined. But the calculation is not complicated- even easier if your financial institution will perform the calculation. Therefore, if keeping the accounts separate means two maintenance fees, and two ticket charges if you want to buy 100-shares of a stock and need to place trades in both accounts in order to do so, it may not be worth it to maintain two Roth IRAs. Bottom-line is that it’s a personal choice.

LOL . I forgot about that one.

It depends on where the 'h' appears in the word. If it appears at the beginning of the word, it is ignored. Otherwise, it is recognized. Hello is 'ello She is she Here is 'ear and here is 'ere Brush is brush Happy is 'appy. But! if I am talking to someone other than a fellow Jamaican, the H at the beginning of the word is heavily enunciated- maybe as a way to make sure there is no misunderstanding

Quadro...But I’m Jamaican and we often drop the 'w' sound (like bellow, we say bello), so that could explain it...

The IRS has issued guidance on ERSOPs - The IRS calls these transactions ROBS. Guidance available here http://www.irs.gov/pub/irs-tege/rollover_guidelines.pdf.

You may also want to try a brokerage firm. They usually offer self-directed IRAs, wherein you can invest stocks, bonds , mutual funds and the whole bit. Some even allow non-traditional investments such as private placements, limited partnerships and real estate.

I agree with masteff on the IRA-to-IRA. This would not be a sale between the IRAs. Instead, it would be a trustee-to-trustee transfer. Just like if you had mutual funds, stocks or cash in one IRA and wanted to move it to another IRA. If the IRA is a traditional IRA, the property could be moved between two traditional IRAs, or between a traditional IRA and a SEP IRA as a trustee-to-trustee transfer The property could also be moved from a traditional IRA to a Roth IRA as a conversion. As long as the movement is between IRAs- no prohibited transaction issue there. The prohibited transaction issue would come into play if the property is being sold to by the IRA to a regular – say a regular checking / savings/brokerage account that is owned by the IRA owner or other interested party.

Actually, instead of giving the siblings money and hoping they give part of it back... have a CPA figure out the tax burden on the distribution and then split the net. (Basically, figure the daughter's taxes w/ and w/out the distribution, subtract the difference from the distribution and then divy it up.) Agreed....much better option

I don’t think you can disclaim benefits, and have the benefits go to you. I think Sieve was right the first time. She would disclaim 6/7, and then ‘step aside’ so the remaining 6 children would share the disclaimed amount. If the agreement does not have a beneficiary provision that defaults to the children, the other option would be to work out some arrangement where she takes a distribution, gives them their share and they reimburse her for any taxes incurred as a result of the amount she gives to them.

Since you mentioned being born before 1936, you are probably referring to the income averaging ( or forward averaging) treatment. That treatment does not apply to IRA assets.

How about Treasury Regulation § 1.401(a)(9)-3 ?

From : http://www.plansponsor.com/pi_type11/?RECORD_ID=43488 So why does almost everyone else and their mothers think that the ISA must be in place by 01/01/2009? From what I gather from reading the regs and the Rev proc, an ISA must be in place by 01/01/2009- at least for runaway accounts. The rest I am still trying to figure out.

It is best to check with the plan to determine whether the assets can be move into inherited 401(k) accounts for your wife and her sister. The IRS has issued private letter rulings (PLR) allowing such transactions, but a PLR cannot be relied on by anyone except the party to whom it was issued. The most your wife and her sister can do is ask the plan administrator. If the plan administrator, they have the option of getting their own PLRs. One thing to bear in mind is that the plan administrator is not concerned ( or even be familiar with) estate issues. Their focus is on ensuring that the plan operates in compliance with the provisions of the plan document and the tax code. Sometimes, the two can seem to require different things. By the way, it is not five years (for the distribution period). That applies only if he had died before his RBD and the estate was his beneficiary. The actual distribution period depends on his age at death, and possibly her age at death.

Interesting and good to know. I was not aware of that, as I have never seen those documents. I have seen custodial 403(b)(7) accounts. In all the cases I have seen , the participant establishes the agreement with the custodian- and usually funds it with a 90-24 transfer. Often, the employer is not even aware that the account is held with the custodian...unless they remit salary deferral or other 403(b) contributions to the account.

Goog to know...

Maybe they are thinking about another agreement. A custodial account must be opened under the custodian’s custodial agreement. But that agreement is between the participant and the custodian. They may be thinking of the Information Sharing Agreement, which is between the custodian and the employer. The Information Sharing agreement is not required in all cases.

Do a search of 'worthless' for all forums, and you will find a few threads with possible solutions. Good luck!

Nassau, Who is VG? If DEF tracks the amounts, the account keeps the grandfathered status

It worked for me earlier this week too. Maybe as late as Wednesday or yesterday. It is working now. Mysterious

Wondering if it is happening to just me. When I search, the search field pops up behind the Benefits Logo in the upper left hand corner...and it does not permit input.

I have a client he is a US citizen who used to work in the UK and has a UK Pension Scheme. Is he able to roll his UK pension into a owner only defined benefit plan or owner only 401k)k) plan and keep his tax-deferred status of the assets? I have been told her can't roll it into a US IRA. Anyone have any contacts that may be able to help us get these assetss transferred to a US qualified plan?? help we have been working on this for a year and would like to resolve it for the client. I am from the UK and have been trying to transfer my pension from Guardian Finanacial for the past 17years.....unsuccessfully......I was recently told it is because of the taxes and the receiving scheme has to have an HMRC reference number.......which no one over here seems to know what that is.....something to do with the taxes.........I have also read an article that if you have resided in another country for more than 5 years you should be able to withdraw the money tax free but again no luck there.........Fidelity is on the approved list from the UK and I have both 401K and pension through Fidelity here in America but yet they still cannot transfer the funds even though they are on their own list.........If anyone can help me find the secret loop in this nightmare please let me know.....email me at crazybrit6@yahoo.com....... Unfortunately, that list is not worth the time it was taken to put together. Apparently someone just pulled firm names out of the air and added them to the list. I have dealt with firms whose names are on the list, and no one at any level have any idea of how the firm’s name got on the list. No one we spoke with at HMRC could tell us who gave the approval to have the firms name added to the list. Consider that a SEP IRA is also on the list. Not a firm, but someone’s SEP IRA . Assets from a foreign retirement account cannot be rolled over to a US retirement account. See http://www.irs.gov/pub/irs-utl/am2008009.pdf

After-tax funds can be converted to a Roth IRA, if the individual is eligible for the conversion. However, IMO the pro-rata distribution rules will apply, and the only way to convert just the after tax amount is to first rollover the pre-tax amount to an eligible retirement plan IMO. My response is based on the current distribution rules for QPs, as there is nothing available that says the rules are different for conversions.

These may help http://benefitslink.com/boards/index.php?showtopic=37257 http://benefitslink.com/boards/index.php?showtopic=11664 http://benefitslink.com/boards/index.php?showtopic=29996