However, if the individual fails to transfer the eligible rollover distribution to an
eligible retirement plan no later than the 60th day following the day of receipt, such amount would be included in gross income subject to tax.
As a result,
eligible retirement plan participants will be able to access their money more quickly with a minimum of red tape.
After continued dialogue with advisors, Raymond James will absorb the cost of mutual fund sales charges and fee rebates to clients with
eligible retirement plan and charitable trust accounts, and not require advisors to return commissions received on the mutual fund purchase transactions," the firm said in a statement in February.
The Internal Revenue Service (IRS) has amended the two safe harbor explanations that may be used to satisfy the requirement that certain information be provided to recipients of
eligible retirement plan rollover distributions.
If the amount rolled over to an
eligible retirement plan exceeds the portion of the pretax amount assigned or allocated to the plan, the excess is an after-tax amount.
402(c)(4)); (2) the employee transfers any portion of the property he or she receives in that distribution to an
eligible retirement plan described in Sec.
A rollover occurs when you withdraw cash or other assets from one
eligible retirement plan and contribute all or part of it within 60 days to another
eligible retirement plan.
This section regards a distribution from an
eligible retirement plan of a deceased employee into an IRA as an eligible rollover distribution.
3) For purposes of this article, the term "conversion" is used to mean qualified rollover contributions from an
eligible retirement plan to a Roth IRA, as described in [section]408A(e)(1).
1) But different rules apply to distributions made from a traditional IRA to an
eligible retirement plan other than an IRA.
unless the distribution is transferred to an
eligible retirement plan by
When the employer stock is distributed to you instead of rolled over into another
eligible retirement plan, you will owe ordinary income taxes only on the stock's average cost basis, not its value on the date of distribution.
