Appleby

QDROphile is right. One cannot 'transfer' amounts from an IRA to a QP. I though- still think- the OP meant 'rollover'- based on the original post and subsequent comments. Good catch . The one per year rollover rule only applies to rollovers between two IRAs. It does not apply to rollovers from IRAs to QPs and vice-versa.

Bear in mind that the plan is not required to allow deferral of RMDs past age 70 1/2. If the only reason for doing the rollover is to defer starting RMDs on the amount , she should check with the plan administrator regarding the plan's required beginning date, if there is any uncertainty.

Thank you both.

Try Peter Gulia- he is a member here. I am not sure if he does that sort of thing, but he is an ERISA attorney and very knowledgeable about plan issues.( click 'Members' on the menu above and search Gulia for him). The board is not letting me copy and paste.

I wish I had seen this earlier. Pershing (www.pershing.com) has a prototype. It is available through any of the hundreds of hundreds of broker-dealers that uses their custodial services. I would bet that if someone calls five local broker-dealers, at least one on the list uses Pershing.

The IRS has not provided any procedures for reporting escheated IRAs. It may be a good idea to issue a 1099-R, just as you would with a levy

Uniform Unclaimed Property Act provides guidelines for when IRAs must be escheated...usually when the IRA is considered 'abandoned' and the IRA Custodian has taken certain specific steps...

Look into Payroll Deduction IRAs and Employer Sponsored IRAs

The assets should be moved as transfers, not rollovers. Though rollovers can be used, it is not necessary in such cases and leaves room for errors and violation of the rollover rules- errors and violations that would not occur with transfers. Check the type of form the employer uses vs. the one required by the new custodian.. It could be a 5304 or 5305-SIMPLE- the transfer rules are different for each- see Notice 98-4

Speaking on the IRA side...the employer should notify the employee. The employee should then notify the IRA Custodian and request to have the amount removed as a 'return of excess' contribution ( the excess amount plus any net attributable income- NIA). The deadline to remove the amount is the IRA owner's tax filing due date for the year the amount was deposited to the IRA, plus extensions. If the amount is not removed by this deadline, a 6% excise tax will apply for every year the amount remains in the IRA. Double taxation ( which would usually apply if the amount was not corrected by the deadline) would not apply because the rollover is due to erroneous information provided to the participant/IRA owner

You are welcome M.

Here is a thread on the topic http://benefitslink.com/boards/index.php?/topic/32774-rmds-and-plan-terminations/

Any ideas of how the DOMA change will affect retirement plans in general? I read one article that suggest that the determination would be made on a state-by-state basis. However, it would seem that or federal laws, the determination would be made on a federal level. Provisions affected include ( but not limited to):- Spousal consent Distribution provisions and options QDROs Transfers due to divorce

If the assets are being moved between two accounts under the same plan, it should be moved as a nonreportable transfer (no 1099-R). If the assets are being moved between plans of maintained by different employers, a 1099-R should be issued and the transaction should be reported on the participant’s Form 1040. The movement can be done via ACAT or no-ACAT. An ACAT or Non-ACAT is always a trustee-to-trustee transfer, but that is just a means of delivery. The plan determines the tax reporting requirements.

No. The withdrawal does not 'void' the contribution- as a result, such an approach would result in an excess contribution.

Seems the paperwork was not completed properly or the IRA custodian misunderstood the instructions, unless (as mastiff asked), the assets in which the $6,000 was invested grew to $30,000. If the Roth IRA has assets other than the $6,000 contribution, the IRA custodian should be contacted to have the transaction corrected. Any amount contributed or converted to the Roth IRA before 2011 was not eligible for recharacterization under the 2011 tax filing deadline (plus extensions).

Hi Dave, When I click on the 'like' button for a post, I get the following message ( evem after the first attempt at 'liking' a post: "An error occurred You have reached your quota of positive votes for the day" Good feature bythe way Denise

Please be careful about the terminology that you use. Using the wrong terminology often result in mistakes that cannot be corrected. A nonspouse beneficiary cannot rollover distributions (except as a direct rollover from a qualified plan, 403(b), 457(b) to an Inherited IRA as a direct rollover). A nonspouse beneficiary can move assets from the decedents’ IRA to an Inherited IRA as a transfer. Also, the life expectancy of the beneficiary is used only if the trust is a qualified trust

That could be true from a Plan Document perspective. I don’t know. But, from a technical perspective, the term has a specific meaning for tax purposes, as you indicated. This is important for participants with net unrealized appreciation (NUA) on employer stocks, who want the NUA to be taxed at the capital gains rate instead of ordinary income tax rate. In such cases, the term lump-sum is important to the participant (or beneficiary), the tax preparer and the IRS. It should be important to the plan administrator as well- because all interested parties should speak the ‘same language’.IRC § 402(d)(4)

IRC § 402(d)(4) There can be more than one lump-sum distribution for a participant, as long as the requirements are met in each case. For instance, a lump-sum distribution can be made when a participant reaches age 59 ½. Contributions can be added to the account after that, allowing a lump-sum distribution to be taken upon separation from service I have always understood the term ‘single sum’ to refer to payments designed to be ‘annuity payments’ being paid in one amount (instead of annuitized)- plan language permitting. On the other hand, a lump-sum distribution refers to distribution of the entire balance of a participant’s account, where the entire balance is distributed in the same calendar year.

Up to $5,500 No changes for catch-up.

http://benefitslink.com/src/irs/IR-2012-77.pdf

You are right. Yes. 1099-R must be issued. If the participant is under age 59 1/2 when the amount is distributed from the account, code 2 must be used in box 7 of 1099-R to show that the 10% early distribution penalty does not apply

Withholding is not required for distributions of less than $200 1099-Rs must be issued for distributions of $10 or more