Appleby

Your distributions from your IRA does not prevent you from making a contribution to your IRA. For instance, you may withdraw(distribute) an unlimited amount, but still make your IRA contribution assuming you have eligible compensation, and for Roth IRAs, assuming your compensation does not exceed the statutory limits. Regarding the amount you transferred to your Roth IRA…by transfer, you may mean Convert-right? If you are not sure, please check with your financial institution to make sure the movement of asserts was done as a Roth Conversion. Contributions limits for 2005 and 2006 are: 2005------- $4,000 or $4,500 if you are least age 50 by 12/31/2005 2006------- $4,000 or $5,000 if you are least age 50 by 12/31/2006 Since you already contributed $2,000 to your Roth IRA for 2005, you can contribute an additional $2,500 either to your Roth IRA, your Traditional IRA, or you can split it between both for 2005. Please let us know if you have additional questions. Denise.

I could be wrong but…isn’t there an extension, beginning 2005, that allows claims for expensed incurred through March 15 of the following year?

Final Roth 401(k) Regs http://www.treas.gov/press/releases/js3068.htm

Final Roth 401(k) Regs http://www.treas.gov/press/releases/js3068.htm

I think there should be(a duty to notify the spouse). It would seem that the goal is to ensure that the child receives the assets-as beneficiary, not just because the assets are in that plan .The challenge is maintaining that provision after the assets have been moved to the IRA and from IRA to IRA. There are many ‘passive’ custodians who will not care about such stipulations in a divorce decree and will accept any change in beneficiary designation from the IRA owner… …also, isn’t there some rule that prevents such provisions from carrying over from a QP to an IRA? If so, the spouse may need to obtain an amendment…

The trust must receive the 1099-R for the portion for which the trust is the beneficiary, when that amount is distributed… This means that the trust was a contingent beneficiary right?...since, as you know, the trust cannot be treated as the beneficiary of the disclaimed portion, unless the trust was also a primary or a contingent beneficiary. Also, was the beneficiary that rolled over the other portion a spouse beneficiary?...asking because only a spouse beneficiary can rollover inherited retirement assets.

This thread may help http://benefitslink.com/boards/index.php?s...pic=18212&st=0&

You now need to click on "options" ---upper right hand corner of the thread

I am not saying that there is-rather, I am asking if that aspect should be considered as well. It does not appear that we have enough information to determine that we can rule out the affiliated service rule...but I could be wrong. A-Orgs, B-Orgs and such is French to me- and I don’t speak French...When in doubt, I defer o the experts on the topic

All you need to take out at this point is the contribution…no additional penalties will be owed if you remove the amount by 12/31/2005. The formula to which you refer is used only for excess amounts removed by the deadline- which would have been October 15, 2005…assuming you filed your return or filed for an extension by April 15, 2005. The earnings accrued on the contribution will be treated as a regular Roth IRA distribution, when removed from your Roth IRA. See the thread at http://benefitslink.com/boards/index.php?showtopic=19477&hl for information on how the earnings may be taxed

mjb, he would also need to check for attribution-right? Pat- assuming no attribution , and assuming that his spouse ( if married) is not one of the partners in the partnership, he can out $14,00 + $4,000 if he is at least age 50 by 12/31/2005, plus 20% of his modified net profit from the SPship. ...let's wait for one of the experts on attributions to add comments. I am not an expert on attribution

Trader, you still need to explain further by using layman’s terms. For instance, instead of saying long, how about saying the client owns the stock-buys it with his own funds, and instead of saying selling short, say the client sold stocks that he does not own, i.e., he sold shares he borrowed from the brokerage house. Even then, I am not sure we would understand your comment unless you provide further elaboraion. The broker would need to determine whether such a transaction is allowed under the IRA agreement and most importantly, whether such a transaction could be considered a prohibited transaction

Hi Weick' -I don’t think that was allowed in the case cited, neither would it be allowed by any custodian. If it is determined that the trust is the beneficiary, then only after the IRA owner dies can the IRA be transferred to an inherited IRA in the name of the rust ( and the name of the decedent).

I am not a lawyer---this may be why this makes no sense to me whatsoever, mainly because of the issue mentioned by gdburns, and the issue mentioned by the Appellant- i.e. .the beneficiary designation determines who is treated as the beneficiary.......Unless they mean that the trust is the beneficiary, and the assets would be transferred to an inherited IRA in the name and TIN of the trust and the name of the IRA owner, after the IRA owner dies

To add to John’s comment about deducting the losses, see the links to IRS.gov ar http://www.google.com/search?hl=en&lr=&q=%...Investments+%22

The answer depends on who you ask. Some financial professionals and financial institutions will treat the underlying beneficiary of the trust as the beneficiary of the retirement account and report distributions in the name and TIN of that individual. Some will not, as they believe that the trust is the direct beneficiary of the account, and all distributions should be done under the name and TIN of the trust…most of these however will allow the pass-through to the underlying beneficiary, if the individual has their own private letter ruling. Note than even in instances where the pass-through is allowed, the payout options must still be applies as if the trust is the beneficiary. For instance, if the retirement account owner dies before the RBD, and the trust is not qualified, the distributions must be completed within the 5-year period. See PLR 200343030

...and I though this message board was just for learning about benefits. Useful tip- thanks.

Participation in a 457 plan does not affect your eligibly to contribution to a Roth IRA. As long as you receive eligible compensation and your modified adjusted gross income does not exceed the statutory limits, you can contribution to a Roth IRA. See Publication 590 at http://www.irs.gov/pub/irs-pdf/p590.pdf for the statutory limits

No tax –no penalties. Taxes apply only to earnings. Penalties do not apply to contributions Why sell the stock? Why not take an in-kind distribution instead?

Hold on…how was the check processed? As a direct rollover made payable to the plan? if so, there is no 60-day limit on rolling over those funds. I know you said the bank mailed the client to the client, but they key is in how the check was processed ( direct rollover or regular distribution). Check the link at http://www.bankersonline.com/operations/ci...difference.html and http://www.ckfraud.org/problems.html regarding the indemnity bond.

U R welcome. Before 2002, the rules you mention applied… Now your regular IRA can be rolled to your 401(k), if the plan is designed to accept rollovers from such IRAs…. A Rollover IRA, otherwise known as a conduit IRA, holds assets that were rolled from a qualified plan or 403(b) account. To rollover your IRA, you distribute the assets and credit the amount to your IRA as a rollover. Does that help?

The five year period would end 12/31/2009. But see the posts at http://benefitslink.com/boards/index.php?showtopic=19477&hl

You are right Bird. I too have had such experiences…The challenge is that ( in many cases) the staff members at the financial institutions are not retirement plan experts , and they are usually not familiar with the retirement plan rules- except for contribution limits, deadlines to establish plans ( without understanding the difference between opening an account and establishing a plan) and other basic rules…not their fault. They are trying to what they think is right and may appreciate being educated. When you know they are wrong- demand to speak with a manager …

If U R unable to log-in under your old username, please see below for an exceprt from a related e-mail from Dave Baker Also, consider wheter you changed your e-mail address since you signed up.

Right... there is no exception to the October 1 deadline for self-employed individuals with no employees. You may already know this- but for the benefit of someone who may not…. if a business owner did complete the Form 5304 or 5305-SIMPLE by October 1, the deadline to establish has been satisfied-even if the financial institution was not presented with the paperwork until after October 1….just want to mention that as I find many client confuse ‘establishing the plan’ , with ‘opening the account’…