Appleby

Code '7' is used to report a 'normal' distribution. By definition, a normal distribution is one that occurs on or after the individual attains age 59 ½ . For an individual who is separated form service age 55, the code will be 1. However, the individual will claim relief from the early withdrawal penalty by filing IRS form 5329.

I agree- had the other person been a spouse ( instead of a monther), then bonding would not be required

Correction- I mean responding to DF@APC…

Responding to Dbguy… With this message board being one of the most popular and productive (for retirement plans), I am surprised we do not have some medium through which we may contact congress directly- for example, some organizations design preformatted letters, which members and visitors may submit to their congressperson directly- from the website. Lacking that, how about we (who oppose this proposal or at least its current format) draft a letter which visitors to this site can send to their congressperson- via fax and/or email- telling our congressperson to oppose this proposal- should it get to that point. Of course, this would mean obtaining the contact information for all current congresspersons. We could include a list or reasons why we oppose this proposal, and have submitters check-off their reason for sending the letter. Of course- it would be only fair – if a similar letter, supporting the proposal is drafted… or would this be a wash?? hmm In the meantime- maybe Dave could work on adding such feature to this website- Dave???

Link to the referenced ASPA/ASAP http://www.aspa.org/archivepages/gac/2003/...3/asap03-03.htm Provided in today’s Benefitslink Newsletter located at http://benefitslink.com/2003/2003_02_05_re...retirement.html

Right- assuming the 1099-R is being issued for tax year 2002 The code begin on page9 of the document ( instructions for 1099R and 5498) at this URL http://www.irs.gov/pub/irs-pdf/i1099r02.pdf

bm1stock, Welcome to benefitslink.com. Your choice of financial institution may be determined by your investment needs. The following links may help to answer your question. http://benefitslink.com/boards/index.php?showtopic=3436 http://benefitslink.com/boards/index.php?showtopic=16304

John G- do you mean “qualified distributions” and not normal distributions? Since technically, a normal distribution (one taken on or after age 59 ½) of earnings could be subjected to ordinary income taxes, but a qualified distribution, one take at least five years after the Roth IRA is established and either when the participant is at least 59 ½ years; due to disability, to beneficiaries after the death of the IRA owner, or up to $10,000 to use towards the purchase of a first home, is always tax and penalty free

Keith371 - Did you know you can edit your posts?- just click on the ‘edit’ button. The answer is yes. However, the employee will be subjected to the 402(g) limit, which means that between the two plans, he/she will not be able to defer more than $12,000 for 2003 ($11,000 for 2002)

GBurns- may not work- The IRS has stepped is program on identifying invalid SS#- and employers and other payors are required to take the necessary steps to obtain a correct SS# from the employee/plan participant/IRA owner. Maybe this is how JDuns became aware of the fact that the SS# is invalid????

Assuming this is an option-the withholding must be a minimum of 30 percent, even if the treaty rate for the country of residence is less that 30 person… the reduced treaty rate is not available to a nonresident alien who does not have a valid TIN.

Sounds like you have a bigger issue- it is illegal to hire illegal aliens. You cannot treat her as lost, as she is not ( by definition of the regs). Remember that you are required to follow certain procedures for lost participants, for which the results must show you are unable to locate the participant Regarding the valid SS#, since she is an illegal alien, she cannot obtain a SS#. She may however be able to obtain an ITIN. http://www.irs.gov/individuals/article/0,,...d=96287,00.html http://www.irs.gov/businesses/small/intern...d=96696,00.html question aslo posted and followed-up here http://benefitslink.com/boards/index.php?s...t=0entry66529

Sounds like you have a bigger issue- it is illegal to hire illegal aliens. You cannot treat her as lost, as she is not ( by definition of the regs). Remember that you are required to follow certain procedures for lost participants, for which the results must show you are unable to locate the participant Regarding the valid SS#, since she is an illegal alien, she cannot obtain a SS#. She may however be able to obtain an ITIN. http://www.irs.gov/individuals/article/0,,...d=96287,00.html http://www.irs.gov/businesses/small/intern...d=96696,00.html

Sounds like you have a bigger issue- it is illegal to hire illegal aliens. You cannot treat her as lost, as she is not ( by definition of the regs). Remember that you are required to follow certain procedures for lost participants, for which the results must show you are unable to locate the participant Regarding the valid SS#, since she is an illegal alien, she cannot obtain a SS#. She may however be able to obtain an ITIN. http://www.irs.gov/individuals/article/0,,...d=96287,00.html http://www.irs.gov/businesses/small/intern...d=96696,00.html question also posted and followed-up here http://benefitslink.com/boards/index.php?s...t=0entry66529

Gary, I am still trying to locate the PLR you referenced- the number you provided appears to be short one digit. BKH- In the meantime, the Chief Counsel's Written Determination at the following URL may help- refer to the case of Orgera v. Commissioner, where the ruling shows that claiming not to be familiar with the rules is no excuse for not complying. http://www.unclefed.com/ForTaxProfs/irs-wd...999/9933038.pdf

Ignorance of the law is no excuse There is a PLR , in which the IRS ruled that the client is responsible- even though the broker made an error. I remember it had something to do with a rollover- I am trying to locate it.

Section 402(a)(8) of the Code is now Section 402(e)(3)

http://www.fourmilab.ch/ustax/www/t26-A-1-B-II-72.html 72(m)(7) Meaning of disabled For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary may require.

We do-

It depends on what you want. If you are looking for a certain type of investment or projected return on your investment… Some financial institutions will limit your investments to mutual funds Others provide certificate of deposits Other provide a wide range of investments that you can mix Like I said, it depends on what your goals are… if it is just to avoid paying fees, than it may not matter where the account is establish as long as that need is being satisfied

For a refinanced loan, the replacement loan's maturity date can be later than the repayment date for the replaced loan

Mbozek’S right. The contribution can be up to the tax return due date, plus extensions. Either can come first- making the contribution or filing the extension.

There is no limit on how may rollover contribution an IRA owner can make. There is however, a limit on how may distributions from one IRA, the IRA owner can rollover. Example: IRA owner takes a distribution of $10,000 from IRA number 1 on May 1, 2002. IRA owner can rollover this $10,000 to any other of his/her IRA (including the one the distribution was taken from) within 60-days. This rollover contribution does not have to be made in a lumpsum. It can be made in partial amounts, providing the total does not exceed $10,000. Only amounts rolled over within the 60-day period is an eligible rollover contribution. …also, it is not necessary to rollover the entire amount If this IRA owner takes any more distributions from IRA number 1 by April 30,2003, this distribution is not eligible to be rolled over. However, if the IRA owner has another IRA, he/she may take a distribution from that IRA and roll it over within 60-days. The limit is on the distribution side on a per account basis. I.e. only one distribution from an IRA can be rolled over within a 12-month period You are right in saying the once per 12-month limit does not apply to direct rollovers involving qualified plans

The limit is actually one per 12-month period ( technically that is a year, but to be clear, the year could be fiscal or calendar). The Custodian of the IRA to which the rollover contribution was made will issue a Form 5498 to report the contribution.

The rollover may be made to the same IRA