|
Posted by DORFMONT@aol.com (Linda Dorfmo on July 15, 2007, 3:09 pm
Please log in for more thread options
My client's deceased father left him and his sister his
retirement accounts. Two of them are IRAs which I will
advise the clients to rollover into their own accounts.
There are three annuities which have the Trust as the
beneficiary. The annuity company told the son that he could
take the money all at once or over 5 years.
Could they take a distribution with code 4 for death and
then roll it over into their own IRAs without going trustee
to trustee?
Linda Dorfmont E.A., CFP, CSA
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Harlan Lunsford on July 18, 2007, 5:12 am
Please log in for more thread options
DORFMONT@aol.com (Linda Dorfmont) wrote:
> My client's deceased father left him and his sister his
> retirement accounts. Two of them are IRAs which I will
> advise the clients to rollover into their own accounts.
How will they do that? Has there been a recent change in
the law? (I'll ask IRS on Tuesday.)
> There are three annuities which have the Trust as the
> beneficiary. The annuity company told the son that he could
> take the money all at once or over 5 years.
>
> Could they take a distribution with code 4 for death and
> then roll it over into their own IRAs without going trustee
> to trustee?
An annuity is not eligible. Just count them lucky to be able
to spread it out over the five years.
ChEAr$,
Harlan
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by joetaxpayer on July 18, 2007, 5:12 am
Please log in for more thread options DORFMONT@aol.com (Linda Dorfmont) wrote:
> My client's deceased father left him and his sister his
> retirement accounts. Two of them are IRAs which I will
> advise the clients to rollover into their own accounts.
To be clear to other readers who may not be as familiar with
the intricacies of IRA rules; the destination accounts must
be properly titled, "Inherited IRA of JoeTaxpayer,
beneficiary", and NOT, I repeat, not rolled into an existing
non-beneficiary account. That would break the IRA and it
would be deemed distributed.
> There are three annuities which have the Trust as the
> beneficiary. The annuity company told the son that he could
> take the money all at once or over 5 years.
>
> Could they take a distribution with code 4 for death and
> then roll it over into their own IRAs without going trustee
> to trustee?
What was the source of the money? If it was from a 403(b) or
other retirement plan, perhaps, but I don't believe this can
be done with any and all annuities.
JOE
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Brew1 on July 18, 2007, 5:12 am
Please log in for more thread options
> My client's deceased father left him and his sister his
> retirement accounts. Two of them are IRAs which I will
> advise the clients to rollover into their own accounts.
>
> There are three annuities which have the Trust as the
> beneficiary. The annuity company told the son that he could
> take the money all at once or over 5 years.
>
> Could they take a distribution with code 4 for death and
> then roll it over into their own IRAs without going trustee
> to trustee?
None of this money can be rolled into their IRA's; only a
spouse can keep an IRA as an IRA--everyone else must cash
them in, although they can sign up for equal, periodic
payments.
If the tax rate for the Trust will be the same regardless of
the amount withdrawn (25%?), then it would depend on the
client's opinion of the annuities and how they were
performing.
IRS Circular 230 Disclosure: To comply with requirements
imposed by the IRS, we inform you that any U.S. federal tax
advice contained herein (including any attachments), is not
intended or written to be used, and cannot be used, for the
purposes of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to
another party any transaction or matter herein.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by ramscot@gwtc.net on July 18, 2007, 5:12 am
Please log in for more thread options
> My client's deceased father left him and his sister his
> retirement accounts. Two of them are IRAs which I will
> advise the clients to rollover into their own accounts.
>
> There are three annuities which have the Trust as the
> beneficiary. The annuity company told the son that he could
> take the money all at once or over 5 years.
>
> Could they take a distribution with code 4 for death and
> then roll it over into their own IRAs without going trustee
> to trustee?
Since when can a non-spouse beneficiary roll an inerited IRA
into their own account? I am aware of the change for a
deceased employee's retirement plan for a non-spousal
beneficiary, but am unaware of any changes for traditional
IRA's.
Robert A Moore, EA
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | Re: Inherited Annuities | July 23, 2007, 1:16 am |
| Re: Inherited Annuities | July 24, 2007, 11:52 pm |
| Re: Inherited Annuities | July 25, 2007, 6:22 pm |
| Re: Inherited Annuities | September 1, 2007, 12:07 am |
| Re: Inherited Annuities | September 1, 2007, 7:09 pm |
| Re: Inherited Annuities | September 3, 2007, 10:14 pm |
| Re: Inherited Annuities | September 5, 2007, 10:58 am |
| Annuities - Taxation to surviving spouse | March 16, 2007, 12:52 pm |
| annuities--amount of yearly exclusion from gross distribution..which method to use | February 17, 2008, 5:04 pm |
| Inherited annuity to "inherited ira" | July 1, 2008, 6:56 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap