Tad Borek wrote:
> Default User wrote:
> > > One other thing mentioned in the notice...plan administrators
> > > need to honor requests to rollover directly to a Roth IRA.
> >
> > Will they? What's the difference from their standpoint? Sending two
> > checks to the receiving institution?
>
> Very generally...the issue is that plan administrators have certain
> responsibilities and liabilities, including some that are triggered
> when distributing funds. And some "legally permissible" aspects of
> these plans only take effect if the plan documents are amended
> accordingly.
Ah, ok. I still don't know if our plan does direct to Roth rollovers or
not. There would be some convenience to getting the whole done at once.
I could get all after-tax immediately in a Roth and look at converting
or not parts of the TIRA holding the taxable earnings.
Part of the problem is talking to reps at the plan adminstrator. The
first one told me I could also rollover all the company match money
too. This initially got me quite interested. However, when I reviewed
the plans docs, if you do that they stop matching for six months. No
thanks.
The second got all freaked when I said I wanted to roll over the
after-tax and the earnings to the same IRA. He told me I'd be
double-taxed. It did make me go research it, and I found out about IRS
Form 8606. This site was useful:
<http://www.investopedia.com/articles/retirement/04/092904.asp>
> But Notice 2008-30 says, for example, that the administrator doesn't
> need to verify that the participant qualifies to make the transfer to
> a Roth - see Q-5.
I hadn't thought about qualifying for a Roth. I guess if they don't
have to verify income levels, it isn't too much of a problem. I'll read
that when I get a chance. I'll have to press them again for an answer
as to whether they allow direct to Roth.
Brian
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators
strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM
THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on
the
Newsgroup.
|
