Felicia Posted March 4, 2003 Posted March 4, 2003 Can IRA assets be used to purchase past service credit in governmental pension plans? If so, could it be done by trustee-to-trustee transfers? How would it be reported? Cites would be helpful.
Appleby Posted March 4, 2003 Posted March 4, 2003 Felecia, this sounds like a question for the pension plan, and not really an IRA question. From the IRA perspective, the issues are: Can the assets be moved to the governmental pension plan. Answer, generally yes, if the assets are Traditional IRA assets, except for RMD amounts and other non-rollover eligible amounts. How would the movement of assets be treated? Answer, as a direct rollover from the IRA. The 1099-R issued for the IRA would reflect code ‘H’ in box 7. The plan will determine: -If the plan accepts rollovers from IRAs -The origin or source of assets that can be used to purchase past service credit Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now