Appleby

jevd Check these posts. http://www.benefitslink.com/boards/index.p...mple,and,excess http://www.benefitslink.com/boards/index.p...mple,and,excess http://www.benefitslink.com/boards/index.p...&f=2&t=8079&hl= I hope these help

Because the employee is a green-card holder, it appears that he cannot be exempted from withholding. Only non-resident aliens can be exempted from withholding ( depending on the treaty rate) by providing the payor with the appropriate forms, certifying that he/she is not an expatriate trying to avoid taxation. A non-resident alien and a green-card holder are mutually exclusive.

No. The current version of the regulation prohibits the direct rollover of assets from a 403(b) plan to a Roth IRA. You must first roll the assets to your traditional IRA and then convert the assets from your traditional IRA to your Roth IRA. Remember that your adjusted gross income must be $100,000 or less and your tax filing category must not be “married filing separately, otherwise, you will not be eligible for a Roth IRA conversion. Contact your financial institution for assistance with establishing a traditional IRA and initiating the direct rollover form your 403(b) account to your Traditional IRA. Also, contact your 403(b) provider regarding their documentation requirement for distributing the assets from the 403(b) account. Once the assets are credited to your traditional IRA. Contact your financial institution regarding their policies and procedures for converting the assets to a Roth IRA. The option to spread the taxes over a few years (four years to be exact) was available only to Roth IRA conversions that occurred in 1998. For Roth IRA conversions that occur years 1999 and later, the full amount is taxes in the year the conversion occurs. More questions?/ Please do not hesitate to post.

Bruce, By recent, do you mean after the Final RMD regs was issued? If it’s a PLR could you provide us with the number? From my understanding of the Final RMD regulations, not even a spouse is allowed to rollover the assets to his/her IRA own IRA when a trust is the beneficiary...ref Treas. Reg. 1.408-8, A-5 …The “look-thought” or “see-though” availability only allows the underlying (oldest) beneficiary of the trust to use their life expectancy to calculate RMD amounts, if the trust meets certain requirements (Treas. Reg. 1.401(a)(9)-4, A-5). ERISA_kid… I am curious as to what “hardship” the spouse would claim…mistake or ignorace of the rules may not cut-it…still , it does not hurt to try. Please keep us posted on that

Ddalk Can you provide a cite? I though that the last day requirement could not be applied only if the employer elected the 3 percent nonelective contribution formula

It appears not. Generally, rollover contributions must be completed within 60-days. There is an exception if a distribution that is intended to be used towards the purchase of a first time home is being rolled over because of delay of cancellation of the purchase or construction. The exception allows the 60-day period to be extended to 120-days. Your question suggests that your home purchase was successfully completed and/or or you did not use the distribution towards the purchase or construction of a your first home.…therefore, you will not be able to rollover the distribution if it has been more than 60-days since you received the distributed assets.

There is no prescribed form to pay this penalty. From my understanding, the penalty is assessed during a DOL audit... at which point , instructions for payment will be provided... if necessary

At least the amount that the plan administrator failed to withhold…( Final Treas Reg 31.3405©-1) If the plan administrator reasonably relied on adequate information provided by the Participant, the plan administrator may not be subject to any penalties or taxes

At least the amount that the plan administrator failed to withhold…( Final Treas Reg 31.3405©-1) If the plan administrator reasonably relied on adequate information provided by the Participant, the plan administrator may not be subject to any penalties or taxes

PLR 9429026 is attached PLR_9429026.doc

mbozek, I get the cashed check piece, by why 2002 Vs 2003? If the check was cashed or if the plan is not willing to void the check, isn’t the issue a dead one since hardship distributions are not rollover eligible?

Here is the URL to the Q & A to which Harwood refers http://benefitslink.com/modperl/qa.cgi?db=...ibutions&id=208

The Roth and Traditional IRA are treated the same for purposes of designating a death beneficiary. The death beneficiary can by anyone or any entity that the IRA owner designates. If the IRA owner does not designate a beneficiary, the IRA plan document may include default beneficiary provisions, which will determine the designated beneficiary. The stretch IRA is more of a concept than a type of IRA . The concept is allowing the IRA to be continued for the life expectancy of the first generation beneficiary, even after he/she dies. The second-generation beneficiary, and subsequent beneficiaries are allowed to take post-death distributions, using the life expectancy of the first generation beneficiary. Prior to the concept of the stretch IRA, many IRA plan documents provided that a first generation beneficiary could not designate a second-generation beneficiary. Under these documents, the estate of the first generation beneficiary would be the beneficiary, and the assets would be required to be distributed by December 31, of the year following the year the first generation beneficiary dies. For IRAs, the IRA owner may designate anyone or any entity as the death beneficiary. However, in some states (marital and community property states) the spouse must provide written consent if the IRA owner doe not designate his/her spouse as the sole primary beneficiary of the IRA. For 401(k) plans and other QRPs, the default beneficiary is usually the spouse, unless the spouse provides written consent to have someone else designated as a primary beneficiary. The plan document should stipulate the applicable rules for beneficiary designations, include default provisions. If all your questions were not answered, or you need clarification on any area of the above, please post your questions/comments

Bob, The two-year period begins on the first day on which contributions are deposited in the individual's SIMPLE IRA, which could be after the account was opened. [Notice 97-6, Q & A I-5]; [iRS Notice 98-4, 1998-2 IRB 26, Q&As I-2–I-5]

Excellent point papogi

Nothing to worry about...Roth IRA contributions are not reported on your income tax return.

Scott, Actually , as Uni-K ( or Individual (k)) Plan is a 401(k) plan for a small business owner. It is not limited to a sole proprietor. The only plan participants would be the business- owner, which by attribution includes the business owner, his/her spouse and his/her children.

The required beginning date is April 1 of the year following the year the IRA holder reaches age 70 ½. Traditional IRA (including SEP and SIMPLE) holders are required to start distributing a minimum amount from their IRA each year; this must begin by the aforementioned required beginning date. The required beginning date does not apply to Roth IRAs For more information on saving for children’s’ education, see the article at the following URL http://www.investopedia.com/articles/retir...t/03/020503.asp

Answered on other message board- see URL http://www.benefitslink.com/boards/index.p...=16&t=19714&hl=

For a traditional IRA, even though the spouse must be the sole beneficiary to use the “treat-as own” option, this does not prevent him/her from distributing the 50% and rolling it to his/her own IRA. What is not allowed if for him/her to transfer ( non-reportable) the amount to his/her IRA or designate the IRA of the deceased as his/her own.

Not at all. Given that the employers are unrelated , the only thing you need to be concerned with is the 402(g) limit

Thanks Weick

I agree Belgarath, A loan offset is treated as a regular distribution for this purpose.

Great help Mary Kay Thanks

P A Weick, I am doing some research … can you tell me where the “IRS has indicated it does not agree with this position “? Thanks