Ask an Expert - Rollovers and Distributions
Ask A Rollover Expert By:
Marcia S. Wagner
Managing Director
The Wagner Law Group, PC
99 Summer St, 13th Floor
Boston, MA 02110
Phone: (617) 357-5200
Fax: (617) 357-5260
Email: marcia@wagnerlawgroup.com
Web: http://www.erisa-lawyers.com/
Marcia S. Wagner is a specialist in pension and employee benefits law. She is also the principal and founder of The Wagner Law Group, a Boston-based boutique law firm specializing in ERISA, pension, compensation and employee benefits. A summa cum laude graduate of Cornell University and the Harvard Law School, she has practiced in Boston for over twenty years. Ms. Wagner is recognized as an expert in a variety of employee benefits issues and executive compensation matters, including qualified & non-qualified retirement plans, “rabbi” trusts, all forms of deferred compensation and welfare benefit arrangements. She is a member of the Employee Benefits Committee of the American Bar Association, Taxation Section, a member of the Pension Liaison Committee for the IRS Key District Office in Brooklyn, New York and was recently appointed to the IRS Advisory Committee on Tax-Exempt & Government Entities. Ms. Wagner is an author and frequent speaker on ERISA/employee benefits topics. Her accomplishments, dedication and integrity have also been noted in numerous publications, directories and rating services.
| Rollover Chart | FAQs | Publication 590: (IRAs) |
| Publication 560: (SEP, SIMPLE & QPs) | Publication 571: (403(b) Plans) | |
| Publication 575: (Pension & Annuity Income) | ||
Q: Can assets in a SIMPLE IRA plan be transferred or rolled into a Safe-Harbor 401(k) plan once the two year period expires?
Yes. After the expiration of the two year period, SIMPLE IRA assets can be transferred tax free to an IRA or a SIMPLE IRA via a trustee-to-trustee transfer. They may not, however, be transferred to any other type of qualified plan. Please see IRS Notice 98-4, Q/A I-4. |
Q: Does it really matter if an IRA rollover account names the owner’s children as equal beneficiaries rather than a living trust in an uncomplicated estate situation?
Yes. The tax effects and planning could differ, particularly the payout horizon. For example, if an IRA rollover account is divided into separate IRAs for each individual beneficiary, then the payout requirements are determined by the life expectancy of each beneficiary. However, if a living trust is named as beneficiary, then the life expectancy of the oldest beneficiary determines the payout requirements. It is recommended that estate planners and/or ERISA counsel be consulted to assist with the decision making process. |
