IRAs (BenefitsLink.com)Headlines re IRAs, gathered by BenefitsLink.comOfficial Guidance IRS Announcement 2008-44: No Penalty for Withdrawing Stimulus Payment That Was Deposited Directly Into IRA, HSA or Similar Accounts- (Found June 24, 2008 ) 4 pages. Excerpt: "The account specified by the taxpayer could be a checking or saving account, or an account that is given favorable tax treatment under the Code, such as an IRA, a health savings account (HSA), an Archer MSA, a Coverdell education savings account (CESA), or a qualified tuition program account (QTP or section 529 program) . . . . An individual may withdraw from a tax-favored account an amount less than or equal to the amount of the Economic Stimulus Payment directly...http://benefitslink.com/IRS/ann2008-44.pdf Guidance Overview Economic Stimulus Payments to IRAsHealth Savings Accounts Can Be Withdrawn- (Found June 24, 2008 ) Excerpt: "According to Announcement 2008-44, if the taxpayer withdraws the payment 'no later than the time for filing the taxpayer's income tax return for 2008, plus extensions,' the amount withdrawn will be treated as 'neither contributed to nor distributed from the account.' Therefore, according to the IRS, 'the amount withdrawn will not be subject to regular federal income tax nor to any additional tax or penalty under the Code.'" (Attorney B. Janell Grenier via Benefitsblog.com)http://www.benefitscounsel.com/archives/001825.html Guidance Overview Converting Retirement Plan Funds to a Roth IRA- (Found June 24, 2008 ) Excerpt: "If your client wants to convert employer plan funds directly to a Roth IRA, there are some new Internal Revenue Service (IRS) rules you should be aware of. The Pension Protection Act of 2006 (PPA) allows such conversions beginning in 2008. In some cases, after-tax plan funds can be converted to a Roth IRA tax-free, if only those funds are converted and the remaining plan funds are rolled to a traditional IRA. Notice 2008-30 confirms that Roth conversions can be done from employer.http://www.financial-planning.com/asset/article/574771/time-convert.html Guidance Overview With Active Participant Status Can You Deduct Your IRA Contribution- (Found June 24, 2008 ) Excerpt: "If the individual is an active participant or married to an active participant, his eligibility for deducting a traditional IRA contribution depends on his modified adjusted gross income (MAGI) and tax filing status. The MAGI limits as they apply to the different tax filing statuses are in the chart on the target page." (RetirementDictionary.com)http://www.retirementdictionary.com/articleActiveParticipantStatusCanYouDeductYourIRAContr... California Assembly Panel Passes State-Run IRA Proposal- (Found June 24, 2008 ) Excerpt: "The bill envisions the Employment Development Department using its existing automated system for collecting payroll taxes to allow workers to have contributions deducted from their paychecks. CalPERS is renowned for its investing prowess, supporters say, and could use a contractor to service the accounts, such as mailing statements and maintaining a Web site. If the retirement system tapped into a large market, the big pool of investors would create economies of scale." (The.http://www.sacbee.com/103/story/850594.html Guidance Overview IRS Answers Questions About PPA Distributions- (Found June 24, 2008 ) Excerpt: "In Notice 2008-30, the IRS answers questions about certain distribution-related provisions of the Pension Protection Act of 2006 (PPA) that took effect in 2008. The notice addresses interest rate assumptions for lump sum distributions, rollovers from eligible retirement plans to Roth IRAs, qualified optional survivor annuity (QOSA) requirements and gap-period earnings." (Watson Wyatt Worldwide)http://www.watsonwyatt.com/us/pubs/insider/showarticle.asp?ArticleID=18937 Guidance Overview IRS Issues Guidance on Rollovers to Roth IRAs, Optional Survivor Annuity Rules- (Found June 24, 2008 ) Excerpt: "The IRS has issued guidance, in question-and-answer format, on the provisions of the Pension Protection Act of 2006 (PPA, P.L. 109-280) which relate to distributions after December 31, 2007." (Wolters Kluwer)http://hr.cch.com/news/pension/031708a.asp Guidance Overview Overview of Nonspouse Beneficiary Rollover Rules- (Found June 24, 2008 ) Excerpt: "Guidance on this topic has evolved since the enactment of the Pension Protection Act of 2006 (PPA). The purpose of this article is to provide all the rules on nonspouse beneficiary rollovers in one place. To start, we provide a list of the guidance on this subject incorporated into this article." (McKay Hochman Co., Inc.)http://www.mhco.com/Commentary/2008/Nonspouse_Roll_031408.htm Guidance Overview Rollovers to Nonspouse Beneficiaries Are Back With Passage of H.R. 3361 - For 2009 not 2008- (Found June 24, 2008 ) Excerpt: "For rollovers to nonspouse beneficiaries, the passage of H.R. 3361 has significant impact because of the IRS' position on rollovers to nonspouse beneficiaries." (Pension Protection Act Blog)http://qualifiedpensionconsulting.com/ppablog/2008/03/18/rollovers-to-nonspouse-beneficiar... With Farm Bill postponed, Future of New Roth 457 Arrangements in 457 Plans Still Uncertain- (Found June 24, 2008 ) Excerpt: "The Senate passed a 30-day extension on farm programs legislation, H.R. 2419, commonly known as the Farm Bill, until April 18, 2008. The bill includes a provision that would provide for Roth arrangements in 457 plans but the future of these new arrangements is uncertain at this time." (ICMA-RC)http://www.icmarc.org/xp/rc/plansponsor/regs/updates/2008/20080318Roth457.html |