Eligible retirement plans that can receive (but are not required to accept) rollovers from IRAs include qualified trusts (including Sec.
It applies to certain distributions rolled over to an eligible retirement plan (that is not an IRA).
(2) Although popular before 2010, interest in Roth IRAs has grown exponentially due to the lifting of the $100,000 modified adjusted gross income cap that previously prevented high-income taxpayers from converting (3) traditional IRAs (or other types of eligible retirement plans) (4) to Roth IRAs.
(4) For purposes of this article, reference to traditional IRAs (contemplated by [section]402) includes all types of accounts listed in the definition of an "eligible retirement plan." The term eligible retirement plan is defined in [section]402(c)(8)(B) and includes a Roth IRA, a traditional IRA, qualified pension, profit-sharing, stock bonus or annuity plan, tax-deferred annuity, or eligible deferred compensation.
A plan administrator may permit a participant to divide his distribution into separate distributions to be paid to two or more
eligible retirement plans in direct rollovers but is not required to do so.
individual (from all
eligible retirement plans) is $100,000.
Of particular interest to governmental plans is Section II of the Notice, concerning Section 824 of the PPA, which amended the list of
eligible retirement plans from which a Roth Independent Retirement Account (IRA) may accept rollovers.
KETRA individuals who live in a state affected by Hurricane Katrina receive favorable tax treatment with respect to distributions from
eligible retirement plans that are qualified Hurricane Katrina distributions, called "Katrina distributions."
They are establishing these plans not only as a way to reduce their taxable income and save for retirement in the future, but they can also rollover assets held in other
eligible retirement plans and take out a personal loan from the plan on up to 50 percent of their vested account balance (or a maximum of $50,000).
Under a recent ruling,
eligible retirement plans can distribute an individual's rollover contributions, at any time, pursuant to his or her request, if the plan separately accounts for such contributions.
Federal law also allows rollovers of government 457 plans, 403(b) and IRAs to other
eligible retirement plans, but California law restricts rollovers and could tax those events at the state level.
Less familiar, though, is me tax treatment of distributions from
eligible retirement plans that most types of tax-exempt entities can establish.
