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Showing results for tags 'Rollovers'.
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I have a variable appreciable life insurance policy that I want to surrender. I would like the insurance company to mail me a check for the cost basis of the policy, which is not taxable. Then I would like the remaining cash value of the policy, which is taxable, to be rolled over to my 401K account. Is this possible? The insurance company will not handle roll-overs so I have to get my financial manage to do that. -
In the most recent model 402(f) notice published by the IRS in Notice 2009-68, the IRS took the position that if a participant elects a direct rollover of only a portion of an amount paid from a plan, with the rest paid to the participant, each payment has to include an allocable portion of taxable and nontaxable amounts. This interpretation created quite a stir, as it was different from what many practitioners were doing, and several groups asked the IRS to modify its interpretation on this point. As best I can tell, the IRS has not addressed these concerns. Have I missed something? If not, have folks changed their rollover procedures to reflect the new IRS position, or are they still permitting participants to designate direct rollover of taxable portions only and/or distribution of nontaxable portions? -
Client has an Employer Sponsored Individual Retirement Account plan - adopted in 1978. The employer withholds the participants' IRA contributions (all are after tax) and the participant's match is also taxed, and makes the deposit to an omnibus IRA trust. Now it's up to each participant to claim the deduction (annually) to convert this contribution to a pretax benefit. What happens, however, when a participant doesn't claim the deduction? Maybe due to the fact that the participant couldn't take the IRA deduction for that year and/or subsequent years? The plan now terminates and the trust holds after-tax IRA money? Where can it be rolled? Is it treated like a ROTH? The Plan doesn't allow ROTH. Any ideas?
