Appleby

For anyone else who may be interested and have not yet made up their minds, see http://benefitslink.com/boards/index.php?s...t=0entry53017 for a comparison of the NIPA and ASPA designations

You may want to check out the CRSP at http://www.aba.com/ICBCertifications/CRSP.htm as well. I have that and the CRPS- which I got first. I decided to get the CRSP because it had continuing education credits and the CRPS does not – at least not in my state. A certification that requires CE credits not only shows that you took the course and passed the exam, but that you are keeping abreast of changes and new developments or taking refresher courses. See http://www.nasd.com/Investor/Resources/Des...lDesigByOrg.asp for a comparison of some of the designations

...or NIPA http://www.nipa.org

The IRA plan document will usually say what's allowed... in general -the administrative fees can be paid out of pocket and may even be deductible. See Page 10 – under “How much can be contributed” and page 12 of IRS publication 590 at http://www.irs.gov/pub/irs-pdf/p590.pdf... Not sure about expense-ratios. I will check .

Yes. A traditional IRA can be transferred to a SEP IRA and vice versa. Some financial institutions even allow SEP contributions to be made to traditional IRAs that are not flagged/identified as SEP IRAs For SIMPLE IRAs, the rules are different. The only assets that can be transferred to a SIMPLE IRA are assets from another SIMPLE IRA. Notice 98-4. SIMPLE IRA assets can be transferred to a traditional IRA after the two-year period has been met. The two-year period begins on the day the first contribution is made to the individual’s SIMPLE Account

Only too often. It is not only the financial institutions, but also some of the attorneys and other professionals who prepare or assist with the preparation of the documents. I find that a comparison of 408(d)(6) and IRC § 414(p)(1) usually resolves the issue

You're welcome. See § 103.122-Customer identification programs for broker-dealers of the Joint Final Rule: Customer Identification Programs For Broker-Dealers (just click on the URL) (a) Definitions. For the purposes of this section: (1)(i) Account means a formal relationship with a broker-dealer established to effect transactions in securities, including, but not limited to, the purchase or sale of securities and securities loaned and borrowed activity, and to hold securities or other assets for safekeeping or as collateral. (ii) Account does not include: (A) An account that the broker-dealer acquires through any acquisition, merger, purchase of assets, or assumption of liabilities; or (B) An account opened for the purpose of participating in an employee benefit plan established under the Employee Retirement Income Security Act of 1974.

Any feedback on the topic will be much appreciated. CarryBack Contribution Defined- Contribution made from January 1 through to April 15 of the current year for the previous tax year. I think there is disagreement on the issue because of the language is 408(d)(4). Rule for making the contribution An IRA contribution can be made from January 1 to December 31 of the year to which the contribution applies. The contribution may also be made From January 1 to April 15 of the following year, providing the IRA owner properly indicates that the amount applies to the previous year when the deposit instrument (check etc.) is delivered to the IRA custodian. Cite: Rule for removing an excess contribution The deadline for removing an excess IRA contribution is the tax filing deadline, plus extensions. 408(d)(4)(A) states (4) One POV- The language in 408(d)(4)(A), specifically "paid during a taxable year" and "for such taxable year" means that the deadline for removing the contribution is the tax filing deadline for the taxable year in which the contribution was deposited to the IRA. However, since 408(d) addresses “tax treatment of distributions” it appears that all it is saying is that the earnings on the earnings on the excess will be taxable for the taxable year in which the amount was deposited to the IRA. For the 1099-R, Code 8 is used if the amount is removed in the year it is deposited to the IRA Code P is used if the amount is removed the following year (by the tax filing deadline including extensions) Reallocation of Excess amount. Since a carry back contribution is deemed made in the previous year, the deadline for removing a carryback contribution that results in an excess is the same as the deadline for removing a contribution made in the previous year for the previous year (from January 1 to December 31 for the year in which the amount is deposited. One POV- if the contribution is made from January 1 to April 15 of the current year for the previous year, reallocating the amount to the current year does not result in the 6 percent penalty being owed Other POV- if the excess is not removed from the IRA, the 6 percent will apply. This is so even if the carryback contribution is reallocated to a current year contribution...unless, the IRA custodian can be convinced that indicating that the amount as a previous year contribution was an error and the transaction should be adjusted to a current year contribution. Your thoughts?

The rules are the same for brokerage firms. ERISA plans are not subject to the CIP rules

I agree with MBozek that after tax assets cannot be rolled from an IRA to a QP. Regarding the tax treatment, AFAIK (I learned that word from Derelict ), the tax treatment would be pro-rata. It would seem to make sense that 100 % of the Roth conversion would be taxed, since when the conversion occurred, there was no other IRA balance. However, I am not aware of any provision that allows for separate tax treatment if assets are rolled over after a distribution/conversion occurs Vs tax treatment of assets that were distributed/converted with no subsequent rollover. For instance, assume the traditional IRA balance consisted of only post-tax assets at the time of conversion, and pre-tax amount was rolled over after the conversion occurred, it would seem logical that the conversion would be tax-free- but the instructions for filing Form 8606 does not ask for any information that makes a distinction for assets rolled over after the distribution/conversion. Therefore it appears that the conversion would be taxed pro-rata.

It appears that an electronic signature is acceptable in instances where spousal consent is not required. IRS Notice 99-1 ( Click on the hyperlink) IRS Notice 99-1

AFAIK-acronym for As Far As I Know. Thank goodness for Google, or it would take me a long time to figure that out-with the possibility of a long time being forever

Key advantages: Earnings are tax deferred and tax-free if distributions are qualified Required minimum distributions are not required by owner (only by beneficiaries), allowing opportunity for continued tax-free earnings an all amounts in account Possible disadvantage – taxes are due for the year the conversion occurs Converted amount could put individual in higher tax bracket. Advantages far outweigh disadvantages Reminder: individual must meet the following requirements in order to convert the assets from a traditional IRA to a Roth IRA MAGI for year of conversion must be no more than $100,000 ( limit is same for married filing jointly) Individual’s tax filing status must not be married filing separately

1. Yes….and the installment payment [substantially equal periodic payments(SEPP) AKA 72(t) distributions] will be deemed to be disqualified/modified. Earnings will also be owed on the penalties that were waived for the previous payments 2. No. One can always start a new series 3. Yes. Returning the funds to the IRA within 60-days after receipt will mean that the amount is non-taxable and not subject to the 10 percent early distribution penalty Should she decide to start a new series after taking the lump-sum, she may consider splitting the assets into two IRAs and calculating the SEPP payments on only one IRA. This would leave the second IRA available for ad-hoc lump-sum withdrawals when needed, and would not affect the SEPP.

Agreed. The two year period begins when the first contribution is deposited to the participant’s SIMPLE account.

FormsRmylife, You cite refers to the waiver when an individual fails to distribute the RMD amount. Are you saying this also applies to substantially equal periodic payments -under 72(t)?

Fred, Do you recall whether the payments began in mid-year or at the beginning of the year? If the client is not on a calendar year schedule, maybe there is still time to distribute the additional $900. For instance, if the distributions for the first year started in July and the individual received $4,800 each month since then, technically, the individual could be on a June/July fiscal year, with the required total for the year to be distributed by June 30.

I agree with Everett

Good point Derelict It seems to makes sense too. How many custodians really track the payments to make sure they meet requirements ? Anyone, anyone? I see no show of hands just kidding

Not really. The October 15 deadline applies to removing the excess from the IRA, thereby avoiding the penalty. The only way to avoid the 6-percent penalty is to remove the excess amount. If the amount is left in the IRA and applied to 2004, or left in the IRA beyond October 15,2004, then the 6-percent penalty will apply. It may be more practical to remove the excess and redeposit the amount. In this case, the earnings must be removed and may be subject to income tax and the 10 percent early distribution penalty, but the taxes and penalty may be less than the 6% penalty.

I think AJ Milano is talking about the possible difference in value of securities, between the time the securities are distributed form the qualified plan to the time the securities are rolled over to the IRA. For instance, assume 100 shares of XYZ are distributed from a retirement account today. Assume the value of the 100 shares if $1,000 ($10 per share). The 100 shares of XYZ are rolled over a few days later. At the time of the rollover, XYZ is prices at $15 per share. The rollover value will be $1,500. If my assumption on your question is correct, then I am not sure that you will find any reference that meets that explicitness. Publication 575 talks about rolling over property from a qualified plan to an IRA…publication 590 says if a distribution of property is made from an IRA, the same property must be rolled over- not the same value. It is very likely then, that when securities are rolled over, the value will be different from the value at the time of distribution when the rollover is made. This means that the 1099-R and the 5498 will reflect different figures- but that’s OK. A letter of explanation can be attached to the tax return to explain the discrepancy. The end result, the

Don’t break out the champagne just yet. In many instances, the forms and instructions change several times before the date by which are required.

I agree with mbozek For years that the RMD amount is less than it should be, the only requirement is that the individual pays the 50 percent excess accumulation penalty. Taking a missed RMD is required only if the individual wants to ask the IRS to waive the 50-percent – in which case, the individual is required to “take steps to remedy the insufficient distribution”

...and if the individual files his/her tax return by the April 15, he/she receives an automatic 6 -months extension( to October 15) to remove the excess or recharacterize the contribution

The RMD for the year of death must be distributed from the account by 12/31 of the year of death. Since he did not satisfy the RMD before he died, then the designated beneficiaries must distribute the RMD by 12/31/04. Any portion of the RMD for 2004 that is not distributed by 12/31/2004 will be subject to the 50 percent excess accumulation penalty. §1.401(a)(9)-5