Appleby

Jus, here is a link that may help http://benefitslink.com/boards/index.php?showtopic=27439

Code 2 ...if under age 59 1/2. Code 7, if 59 1/2 or older ...assuming you mean from a qualified plan, 403(b)...I dont think you would, but some individuals do use QDRO to refer to divorce decree for IRAs..

See http://www.retirementdictionary.com/After-...ntributions.htm for filing tips on after-tax contributions to IRAs

NIA defined here http://www.retirementdictionary.com/nia.htm , which includes a link to the formula used to calculate the amount

As a follow-up to mjb’s response… if the amount was credited to the IRA last year , the client have until October 15 of this year to remove the amount as a return of excess, and include net income attributable (NIA to the amount. If it was credited to the IRA this year, the deadline is October 15 of next year. The deadline is usually tax filing deadline including extensions. However individuals who file their return on time (or file for an extension) on time receive an automatic 6-months extension to correct. If the amount was credited to the account before last year, it is removed as a return of excess ‘after- the deadline’, which means it is not accompanied by NIA. The individual should follow the IRA custodian’s procedure for requesting a return of excess contribution, by submitting the required paperwork- which is typically a distribution request form.

Jevd, The rollover certification that the IRA owner is required to sign usually includes irrevocable language. See also Treas. Reg. 1.402©-2, Q&A 13

Masteff, By irrevocable we mean you can’t say ‘Oops, I change my mind. Reverse the rollover and make it like it never happened.”. This does not preclude a subsequent distribution and rollover of those same amounts- providing the amount is rollover eligible.

A carefully worded letter will do the trick. You are likely talking to the customer service/processing departments. Ask to speak with the legal department- and not just anyone there- but an attorney. I agree with Janet too

I agree with mjb. She can max out the SEP or PS, because doing so will not result in contributions of more than $45,000, when added to the 403(b) contribution. The CB plan does not affect the self-employment plan. But contributions to the 403(b) plan is aggregated with the SEP/PS to determine 415 limit of $45,000. 401(k) or SIMPLE is not an option, as she already maxed out her 402(g) limit.

Fredman, What's a bounty hunter?

Thanks all Very helpful

One of my clients (a brokerage firm) has been receiving an influx of calls about Qualifying Recognized Overseas Pension Schemes (QROPS). One website http://www.hmrc.gov.uk/PENSIONSCHEMES/qrops-list.htm I figure something must have occurred recently – some change in UK plan provisions etc that has prompted these calls. Apparently, they are being told by their plan administrators that they can rollover amounts from their UK Pension plans to a retirement plan in the United Stated, if the plan is part of the QROPS program. From what I was able to gather –after reading some of the material on the website- this may be limited to some type of superannuation scheme. As we know, these plans do not satisfy the definition of an eligible retirement plan for rollover/transfer purposes. Also, the term ‘Pension” usually means something different in other countries. For instance, in Jamaica, pension means a superannuation fund. Jevd, I figure you may be getting these calls as well?. Has anyone else come across this?

I would agree. The effective date of the amendment would be as of January 1 of the year following the year that the amendment was made. I have seen nothing to the contrary

You could make a non-deductible contribution to the Traditional IRA. However, if the net result is better- it may be better to leave it in the Roth IRA where the earnings can be tax-free.

Good for you Simmons. All the custodian should be asking for is a copy of the divorce decree or legal separation instrument , clearly stating that the IRA is part of the settlement, and the portion of the IRA that is awarded to the receiving spouse. The document should also reference the account by number- so it is clear to which IRA the document applies. The custodian may also require written instructions to effectuate the transfer to the receiving spouse's IRA, if the IRA ( to be credited) is not provided in the decree. On the flip side, custodians often receive QDROs for IRA, and requests from attorneys asking the custodian to either approve a QDRO format or provide instructions on how to prepare a QDRO for an IRA. It seems there is confusion on both sides about the plans to which QDROs apply

State law does determine. SEP and SIMPLE IRAs have unlimited protection from bankruptcy. While traditional IRAs are limited to $1M, this limit does not include amounts that were rolled over or transferred from employer sponsored plans

…or, recharacterize the contribution to a Traditional IRA. A recharacterization or a return-of-excess contribution must include net attributable income (NIA). If you are lucky, the custodian will calculate the NIA for you. If not, you will need to calculate it yourself, or pay someone to.

Outstanding. Thanks Don.

I am trying to get a copy of PLR 8515088. Tks

mjb, Are you saying that the spouse beneficiary who chooses not to treat the IRA as his/her ‘own’ is never subject to the 5-year rule? From what I understand, the spouse beneficiary, who chooses the beneficiary IRA option , has two options: The five year option or The life expectancy option.( this being the default, unless the document says otherwise) Where the life expectancy option applies, (B)(iv)(I) kicks in for the spouse

If the surviving spouse wants to rollover the amount to her IRA, she should take the rollover-portion of the amount, along with a signed rollover-contribution form (or whatever instructions they require) and present it to the financial institution with instructions to book it to her IRA as a rollover contribution. They should not ( and will likely not ) ask about the source of the funds, as the responsibility for determining if a rollover is proper rests with the IRA owner. But once you begin to ask them questions....

Are we talking a SARSEP? Asking because you mentioned 1996

The amount converted in 2006 must age for five years in your Roth IRA in order to avoid the 10% early distribution penalty. If it has not aged for five years, the penalty does not apply if you meet at least of the exceptions. The earnings are tax and penalty free if the distribution is qualified. If the distribution is not qualified, the following applies: The earnings are subject to the 10% early distribution penalty, unless an exception applies and Income tax

Yes. For the unincorporated business owner. If the business owner has common-law employees, their salary deferral contributions must be made from their paychecks and deposited to their SIMPLE IRAs by the 30th of the month, following the month to which the deferral applies. For instance, salary deferral contributions for November must be deposited by December 30, and those for December must be deposited by January 30.

Pretty funny