Appleby

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

What would be done for Cher ? Madonna?

Got mine too- thanks Dave

Congratulations Dave- Same here Tom

I'm pushing the "Like" button. Haha- I find myself wishing that every online forum had the option to 'like' posts. ‘Like’ your comment too

Reminder: The penalty is increased to 25% if the distribution occurs before the two year requirement has been met

Financial institutions have strict requirements that plan documents must be returned in a stipulated amount of time after which the IRA owner will receive a request to submit the documents within X days or the account will be closed and the funds returned to the owner. If the documents are not completed and returned the account will be closed. IRA agreement usually has language somewhere on the responsibility of the IRA owner to return the signed application. Return of funds is treated as a distribution. True- usually 30-days

If he lives in a community/marital property state, the IRA custodian may require spousal consent to name someone other than spouse as primary beneficiary, unless an exception applies- something else to think about.

Why not? if it makes his/her happy...

No. It cannot be done, because an estate cannot rollover amounts from a qualified plan. Only individuals and qualified trusts can rollover inherited amounts from qualified plans to inherited IRAs

Adding to Masteff’s response….You can return all, or you can return part of it. The amount will be nontaxable, whether it is returned to your Roth or not, assuming your total distributions to date has not exceeded your contributions. The 60-day is extended to 120-days, if the rollover is due to the delay or cancellation of the purchase or construction of the residence

Bumping up- I think controlled group, but defer to those who are experts in this area.

Thanks John I like ‘allowed’. I will try it and see if it fits in the space. Yes ,nonperson includes estates- also charities and nonqualified trusts. Seems I need another footnote.

Then she cannot. She has that option only if she is a spouse beneficiary and a participant in the plan to which she wants to rollover. Notice 2008-30 and 2009-68 should help if cite is needed

The ineligible rollover becomes an IRA contribution the year it is rolled to the IRA. Removal of the amount from the IRA should be done as a ‘return of excess’ ( removed from the IRA by the individual’s tax filing deadline, including extensions). The removal should include any NIA This post may help http://benefitslink.com/boards/index.php?showtopic=35097

Feedback welcome. Thanks Appleby_Beneficiary_portability_Page_5.pdf

No. There is a Bill, that would allow such a conversion if it becomes law. As of now, moving funds from a traditional 401(k) to a Roth 401(k) is not permissible, even within the same plan.

Bear in mind too that you can recharacterize a conversion (if done by the deadline). As such, if you convert this year, you can have your competent tax professional two draft tax returns: one with the conversion and the other without. If the one 'with' results in more taxes than you can afford, then you can recharacterize all or a part of the conversion amount. Of course, conversions done in 2010 comes with a wrinkle- as you have the option to include the conversion amount in your 2010 income, or spread the amount 50/50 over 2011 and 2012. And...what masteff said

You are right Bird. Remember too, that if after-tax amounts (from nondeductible IRA contributions and rollovers of after-tax amounts from QPs/403(b)) are in the SEP, those amounts cannot be rolled over to the QP. And, if it is an RMD year for the participant, the RMD should be taken before the rollover is initiated.

k2 and pmac, this was available as of 01/01/02, under EGTRRA

http://www.irs.gov/newsroom/article/0,,id=214321,00.html

http://www.irs.gov/newsroom/article/0,,id=214321,00.html

http://www.irs.gov/newsroom/article/0,,id=214321,00.html