457 Plan Roth Contributions & Conversions New Opportunities

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "457 Plan Roth Contributions & Conversions New Opportunities"

Transcription

1 457 Plan Roth Contributions & Conversions New Opportunities Date: Presented by: AC: This presentation is the property of ICMA-RC and may not be reproduced or redistributed in any manner.

2 Disclosures ICMA-RC does not offer specific tax or legal advice. ICMA-RC recommends that you consult with a qualified financial and/or tax professional prior to implementing any financial strategy. 2

3 Agenda 457 Plan Roth Provisions Elective Deferrals In-Plan Conversions Plan Rules Contributions Withdrawals Loans Rollovers Roth Assets: Employer Plans vs. IRAs Additional Information 3

4 Summary of New Roth Provisions Roth Elective Deferrals Designate a portion (or all) of the contributions to your 457 plan as Roth In-Plan Roth Conversions Convert pre-tax assets to Roth assets Must be eligible to withdraw assets from your plan 4

5 Qualified Distributions Distributions of Roth Assets are Qualified (tax-free) if Five years have passed since January 1 of the year of your first Roth contribution (including rollovers) and You are at least 59½ (or disabled or deceased) Example: Roth Analyzer Tool If you make your first Roth contribution in October of 2011, you will have met the five year requirement as of January 1,

6 Roth Benefits Tax-free distributions Higher after-tax contribution limits than Roth IRAs Eligibility at all income levels Tax planning 6

7 What is a Roth Account? Exists within your current 457 plan Similar to a rollover account used to track assets you roll-in from a previous employer s plan Tax reporting differences for pre-tax vs. Roth assets No such thing as a Roth 457 Plan 7

8 Roth Elective Deferrals After-tax no reduction to current taxable income Initiating Roth contributions Amount of Deferral Change Form Enrollment Form Contribution limits Apply to the combination of Roth and pre-tax deferrals Roth Analyzer Tool To help illustrate the potential benefit of Roth contributions 8

9 In-Plan Roth Conversions You must be eligible to withdraw assets Assets are taxable in the year of the conversion Outstanding loan balances are excluded Requests In-Plan Roth Conversion Form Evaluating Roth Conversions In-plan conversions cannot later be reversed (recharacterized), as with Roth IRA conversions Consult with a qualified tax professional 9

10 Plan Rules

11 Changes? Not as Many as You May Think Contribution limits Apply to combination of pre-tax and Roth deferrals Investments One single allocation for pre-tax and Roth contributions Withdrawal eligibility Same rules as pre-tax assets Most of the standard 457 plan rules apply 11

12 Withdrawals of Roth Assets Pro-rata distribution of contributions and earnings Qualified: Tax-free Non-Qualified: Earnings only are subject to taxes Example Roth Account Balance $100,000 Roth Contributions (basis) $60,000 (60% of total balance) Roth Earnings $40,000 Roth Withdrawal Request $10,000 Roth Contributions (basis) $6,000 (60% of total withdrawal) Roth Earnings $4,000 Required minimum distribution (RMD) rules apply Unlike Roth IRAs, which are not subject to RMDs 12

13 Loans and Roth Assets Not directly available for loans Unless elected by plan sponsor Are included when determining how much you are eligible to borrow Example Balance = $5,000 $2,000 pre-tax $3,000 Roth Maximum Loan = $2,000 50% of $5,000 = $2,500 limited to $2,000 (by pre-tax balance) 13

14 Rollovers and Roth Assets Other retirement plans Can be rolled to/from other 457, 401(k), or 403(b) plans that accept and provide recordkeeping for Roth assets May impact 5-year rule for qualified distributions from the receiving plan Roth IRAs Roth assets can be rolled from 457 plan to a Roth IRA Date of first Roth IRA contribution used to determine whether distributions from the IRA are subject to taxes Roth IRA assets cannot be rolled to a 457 plan 14

15 Roth Assets: Employer Plans vs. IRAs

16 Summary Comparison vs. Roth IRA Maximum contribution Eligibility to contribute Can contributions be recharacterized*? Can conversions be recharacterized*? Do RMD rules apply? 457 Higher All plan participants No No Yes Roth IRA Lower (although, if married, can also contribute to spouse s IRA) Must have income less than IRS limits Yes, up until mid-oct. of following year Yes, up until mid-oct. of following year No, other than non-spouse inherited accounts *Recharacterization The movement of a contribution or conversion amount from one IRA type to another (e.g., Roth IRA contributions being recharacterized as Traditional IRA 16contributions).

17 Contribution Rules vs. Roth IRA 457 Roth IRA What is the Maximum Contribution? (2011) Do Contributions Reduce Taxable Income? Do Earnings Accumulate Tax-Deferred? Roth No Yes Pre-Tax $16,500 or 100% of compensation Age 50 Catch-Up: $5,500 ($22,000) Pre-Retirement Catch-Up: $16,500 ($33,000) Limits apply to the combination of pre-tax and Roth contributions Yes Yes Roth $5,000 Age 50 Catch-Up: $1,000 ($6,000) Pre-Retirement Catch-Up: N/A No Yes 17

18 Withdrawal Rules vs. Roth IRA 457 Roth IRA Roth Pre-Tax Roth Are Earnings Taxed Upon Withdrawal? No, if distribution is qualified Yes No, if certain criteria are met 2 Are Contributions Taxed Upon Withdrawal? No Yes No Might the 10% Early Withdrawal Penalty Apply? No 1 No 1 Yes 2 Do IRS RMD Rules Apply? Yes Yes No 1 Exception: non-457 plan assets rolled over and subsequently withdrawn prior to age 59½ 2 Roth withdrawals are tax-free if individual has owned a Roth IRA for a 5-year holding period and either a) is over the age of 591/2; b) qualifies for a first-time home purchase; c) is disabled; or d) his/her beneficiaries receive assets after his/her death. Otherwise, ordinary income taxes apply. Penalty taxes may apply also unless qualifies for an exception. See IRS Publication

19 Get More Information! ICMA-RC website Q&A Roth Analyzer Summary Start Contributing! Enrollment Form Amount of Deferral Change Form 19

20 Questions? Investor Services

chart retirement plans 8 Retirement plans available to self-employed individuals include:

chart retirement plans 8 Retirement plans available to self-employed individuals include: retirement plans Contributing to retirement plans can provide you with financial security as well as reducing and/or deferring your taxes. However, there are complex rules that govern the type of plans

More information

Questions and Answers about the Roth 401(k)

Questions and Answers about the Roth 401(k) THE RETIREMENT GROUP AT MERRILL LYNCH Q A Questions and Answers about the Roth 401(k) How the Roth 401(k) Works Q. What is the Roth 401(k) contribution option? A. The Roth 401(k) contribution option allows

More information

Roth 401(k) THE Alternative WAY TO SAVE FOR RETIREMENT

Roth 401(k) THE Alternative WAY TO SAVE FOR RETIREMENT Roth 401(k) THE Alternative WAY TO SAVE FOR RETIREMENT An Additional Way to Reach Your Financial Destination Your company sponsored retirement plan offers an additional feature that may assist you in reaching

More information

ROTH 401(k) For ITT Corporation, Systems Division Retirement Savings Plan Questions and Answers

ROTH 401(k) For ITT Corporation, Systems Division Retirement Savings Plan Questions and Answers ROTH 401(k) For ITT Corporation, Systems Division Retirement Savings Plan Questions and Answers As indicated on the December 1 notice, effective January 1, 2009, ITT Systems Division is adding a Roth 401(k)

More information

Comparison Chart: Pre-Tax Deferrals, Designated Roth Deferrals, In-Plan Roth Rollovers, & Roth IRAs

Comparison Chart: Pre-Tax Deferrals, Designated Roth Deferrals, In-Plan Roth Rollovers, & Roth IRAs Comparison Chart: Pre-Tax Deferrals, Designated Roth Deferrals, In-Plan Roth Rollovers, & s Caution: Please note that some of the items included on this grid are the result of Lincoln National Corporation

More information

Tax Me Now or Tax Me Later: Is the Roth for Me?

Tax Me Now or Tax Me Later: Is the Roth for Me? Nationwide Retirement Solutions does not control any third party material and is not responsible for its content. NRM-8861MD-MD Maryland Supplemental Retirement Plans Tax Me Now or Tax Me Later: Is the

More information

Traditional IRA and Roth IRA

Traditional IRA and Roth IRA Traditional IRA and Roth IRA Plan Today for a Secure Tomorrow lord abbett retirement services Bring an Unwavering Commitment to Your Retirement Plan Founded in 1929, Lord Abbett is an independent, privately

More information

Roth IRAs and Conversions

Roth IRAs and Conversions Roth IRAs and Conversions When the law that created Roth IRAs was originally enacted there were two eligibility limits placed on them. The first affected an individual s ability to contribute to the Roth-

More information

Your Payroll Roth IRA. For Flexible, Tax-Free Savings

Your Payroll Roth IRA. For Flexible, Tax-Free Savings For Flexible, Tax-Free Savings A Roth IRA is a savings vehicle that complements your employer retirement plans by allowing for tax-free earnings and, if needed, flexible withdrawals. ICMA-RC s Payroll

More information

IMPORTANT INFORMATION ABOUT ROTH CONTRIBUTIONS

IMPORTANT INFORMATION ABOUT ROTH CONTRIBUTIONS IMPORTANT INFORMATION ABOUT ROTH CONTRIBUTIONS What is a Roth 401(k)? Is it a new type of plan? No, it is not a new type of plan. Designated Roth contributions are a type of contribution that new or existing

More information

5 Reasons to Choose a Payroll Roth IRA

5 Reasons to Choose a Payroll Roth IRA 5 Reasons to Choose a Payroll Roth IRA Date Presented by: AC: 21395-0514-7233 ICMA-RC does not provide specific tax advice. This presentation is the property of ICMA-RC and may not reproduced or redistributed

More information

Take Another Step for Your Financial Future ICMA-RC s Payroll Roth IRA

Take Another Step for Your Financial Future ICMA-RC s Payroll Roth IRA Take Another Step for Your Financial Future ICMA-RC s Payroll Roth IRA Open an ICMA-RC Payroll Roth IRA It s quick and easy to open a Payroll Roth IRA. It takes two easy steps: Send ICMA-RC the completed

More information

Roth 403(b) Contribution Option

Roth 403(b) Contribution Option Roth 403(b) Contribution Option Frequently Asked Questions George Mason University offers a Roth 403(b) contribution option under the George Mason University Tax Deferred Savings Plan (the Plan ). The

More information

Plan Rollover Conversions After 1-1-2015

Plan Rollover Conversions After 1-1-2015 Plan Rollover Conversions After 1-1-2015 Mid-Air Conversions with After-tax QP Contributions Christine G. Russell, QPA, QKA, AIF, RMA Director of Training and Education PenServ Plan Services, Inc. Full

More information

TRADITIONAL IRA AND ROTH IRA. Plan Today for a Secure Tomorrow

TRADITIONAL IRA AND ROTH IRA. Plan Today for a Secure Tomorrow TRADITIONAL IRA AND ROTH IRA Plan Today for a Secure Tomorrow INVESTMENT-LED. INVESTOR-FOCUSED. As an investment-led firm, we evaluate every decision from an investment perspective in an effort to achieve

More information

Exploring the Roth 401(k)

Exploring the Roth 401(k) Exploring the Roth 401(k) Our Purpose Today What is the Roth 401(k)? How does it differ from traditional 401(k)s? How does it differ from Roth IRAs? Other points to consider Is the Roth 401(k) right for

More information

IN-PLAN 403(b) ROTH CONVERSION FORM For Current Members Only

IN-PLAN 403(b) ROTH CONVERSION FORM For Current Members Only IN-PLAN 403(b) ROTH CONVERSION FORM For Current Members Only General Member Information First Name (Please use full legal name) Middle Name Last Name Social Security Number Name of Ministry Employer Date

More information

Understanding the Payroll Deduction IRA

Understanding the Payroll Deduction IRA Understanding the Payroll Deduction IRA Date Presented by: Name, Title 0110-3705 This presentation is the property of ICMA-RC and may not reproduced or redistributed in any manner. Agenda ICMA-RC Overview

More information

SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS

SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS This notice explains how you can continue to defer federal income tax on your retirement plan savings in the Plan and contains important information you will

More information

Retirement Plan Contribution Limits and Withdrawal Requirements

Retirement Plan Contribution Limits and Withdrawal Requirements Manning & Napier Advisors, LLC Retirement Plan Contribution Limits and Withdrawal Requirements April 2011 Approved CAG-CM PUB030-R (10/11) Introduction The following report provides general information

More information

Vantagepoint. Complement Your Public Sector Retirement Savings

Vantagepoint. Complement Your Public Sector Retirement Savings Vantagepoint Payroll roth IRA Complement Your Public Sector Retirement Savings Introduction An Individual Retirement Account (IRA) is one of the best ways for individuals to save for retirement. IRAs

More information

To Roth or Not Revised September 2013

To Roth or Not Revised September 2013 Introduction To Roth or Not Revised September 2013 Tax law allows all taxpayers (without income limitation) to convert all or part of their traditional IRAs to Roth IRAs. Even though conversion to Roth

More information

ira individual retirement accounts Traditional IRA

ira individual retirement accounts Traditional IRA ira individual retirement accounts Traditional IRA Grow dollars for tomorrow, save on taxes today. A traditional IRA may provide you significant immediate tax savings, and due to the deferral of all taxes

More information

Roth IRA Conversion... Does Taking Action Get You to Point A or Point B

Roth IRA Conversion... Does Taking Action Get You to Point A or Point B Roth IRA Conversion... Does Taking Action Get You to Point A or Point B If only it were that simple. There is no black and white here. Everything has its risks and is based on assumptions. Upfront, this

More information

Roth 401(k) A new contribution option available in your 401(k) plan

Roth 401(k) A new contribution option available in your 401(k) plan THE RETIREMENT GROUP AT MERRILL LYNCH Roth 401(k) A new contribution option available in your 401(k) plan Your 401(k) plan is now more flexible than ever! With a choice between the traditional 401(k) and

More information

Retirement. A Guide to Roth IRAs

Retirement. A Guide to Roth IRAs Retirement A Guide to Roth IRAs A Roth IRA is an individual retirement account named for the late Senate Finance Committee Chairman, William Roth, Jr. who championed the creation of this new type of IRA.

More information

Agenda. Designated Roth Accounts From Deferral to Distribution Wednesday, May 1, 2013

Agenda. Designated Roth Accounts From Deferral to Distribution Wednesday, May 1, 2013 Designated Roth Accounts From Deferral to Distribution Wednesday, May 1, 2013 William Grossman, ERPA, QPA, APR Director of Education & Communications McKay Hochman Co., Inc. Agenda Background Benefits

More information

SPECIAL TAX NOTICE FOR PARTICIPARTS RECEIVING PLAN BENEFIT PAYMENTS

SPECIAL TAX NOTICE FOR PARTICIPARTS RECEIVING PLAN BENEFIT PAYMENTS SPECIAL TAX NOTICE FOR PARTICIPARTS RECEIVING PLAN BENEFIT PAYMENTS SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS This notice explains how you can continue to defer federal income tax on your retirement plan

More information

TAX AND RETIREMENT SAVINGS TIPS FROM THE MASSACHUSETTS BANKERS ASSOCIATION

TAX AND RETIREMENT SAVINGS TIPS FROM THE MASSACHUSETTS BANKERS ASSOCIATION FOR IMMEDIATE RELEASE Contact: Bruce Spitzer 617-523-7595 TAX AND RETIREMENT SAVINGS TIPS FROM THE MASSACHUSETTS BANKERS ASSOCIATION BOSTON, March 16, 2015 The federal and state tax deadline is nearly

More information

Roth IRAs The Roth IRA

Roth IRAs The Roth IRA Roth IRAs The Roth IRA 2015 and 2016 Questions & Answers What is a Roth Individual Retirement Account (Roth IRA)? A Roth IRA is a type of tax-preferred savings and investment account authorized by Internal

More information

Franklin Templeton IRA

Franklin Templeton IRA Investor s Guide Franklin Templeton IRA Traditional IRA Roth IRA Whether you are just starting to save or entering retirement, an IRA can be an important part of a sound financial strategy to meet your

More information

Roth Conversions. Agenda. Conversion Background In-plan Roth Conversions:

Roth Conversions. Agenda. Conversion Background In-plan Roth Conversions: Roth Conversions Bill Grossman, ERPA, QPA, GFS, APA McKay Hochman Consulting, Provided by DST Agenda Conversion Background In-plan Roth Conversions: SBJA, Notice 2010-84 ATRA, Notice 2013-74 Designated

More information

General Information About Rollovers. Where may I roll over the payment? Payments from a Designated Roth Account.

General Information About Rollovers. Where may I roll over the payment? Payments from a Designated Roth Account. SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS You are receiving this notice because all or a portion of a payment you are receiving from your employer s retirement plan (the Plan ) is eligible to be rolled

More information

Sample. Table of Contents. Introduction... 1. What are Roth deferrals and how do they differ from regular deferrals (pre-tax) to a 401(k) plan?...

Sample. Table of Contents. Introduction... 1. What are Roth deferrals and how do they differ from regular deferrals (pre-tax) to a 401(k) plan?... Table of Contents Introduction... 1 What are Roth deferrals and how do they differ from regular deferrals (pre-tax) to a 401(k) plan?... 2 Is it better for a plan participant to make Roth deferrals or

More information

ROTH 401(k) FEATURE QUESTION & ANSWER (Q&A)

ROTH 401(k) FEATURE QUESTION & ANSWER (Q&A) ROTH 401(k) FEATURE QUESTION & ANSWER (Q&A) Purpose of Q&A: Beginning January 1, 2006, employers that sponsor 401(k) retirement plans may offer a new plan design feature after-tax Roth deferrals. The purpose

More information

AN ANALYSIS OF ROTH CONVERSIONS 1

AN ANALYSIS OF ROTH CONVERSIONS 1 AN ANALYSIS OF ROTH CONVERSIONS In 1997, Congress introduced the Roth IRA, giving investors a new product for retirement savings. The Roth IRA is essentially a mirror image of the Traditional IRA, but

More information

Roth IRAs. Why Should I Convert Traditional IRA Funds into a Roth IRA? Questions & Answers

Roth IRAs. Why Should I Convert Traditional IRA Funds into a Roth IRA? Questions & Answers Roth IRAs Why Should I Convert Traditional IRA Funds into a Roth IRA? Questions & Answers Purpose of a Roth IRA Conversion Contribution If a person has a traditional IRA, federal income tax laws allow

More information

A Consumer s Guide To

A Consumer s Guide To A Consumer s Guide To 401(k) Plans NYSUT Member Benefits wants NYSUT members to be the best-informed consumers in the state. This Consumer Guide is one of our contributions towards achieving that goal.

More information

Strength of Many. Convenience of One. Voya Select Advantage IRA. Mutual Fund Custodial Account

Strength of Many. Convenience of One. Voya Select Advantage IRA. Mutual Fund Custodial Account Strength of Many. Convenience of One. Voya Select Advantage IRA Mutual Fund Custodial Account Life brings change. C hange often comes from life events such as switching jobs or retiring. What impact will

More information

BMO Funds State Street Bank and Trust Company Universal Individual Retirement Account Disclosure Statement. Part One: Description of Traditional IRAs

BMO Funds State Street Bank and Trust Company Universal Individual Retirement Account Disclosure Statement. Part One: Description of Traditional IRAs BMO Funds State Street Bank and Trust Company Universal Individual Retirement Account Disclosure Statement Part One: Description of Traditional IRAs Part One of the Disclosure Statement describes the rules

More information

Inheriting an MNDCP account

Inheriting an MNDCP account Inheriting an MNDCP account Non-Spouse as beneficiary When a non-spouse beneficiary inherits an MNDCP 457(b) account, careful consideration must be taken when choosing what to do with the account. This

More information

IRS Special Tax Notice

IRS Special Tax Notice IRS Special Tax Notice YOUR ROLLOVER OPTIONS You are receiving this notice because all or a portion of a payment you are receiving from your Baylor University Retirement Income Plan (the Plan ) serviced

More information

Safe Harbor Explanations Eligible Rollover Distributions. Notice 2014-74 I. PURPOSE

Safe Harbor Explanations Eligible Rollover Distributions. Notice 2014-74 I. PURPOSE Safe Harbor Explanations Eligible Rollover Distributions Notice 2014-74 I. PURPOSE This notice amends the two safe harbor explanations in Notice 2009-68, 2009-2 C.B. 423, that can be used to satisfy the

More information

STATE OF HAWAII EMPLOYEES RETIREMENT SYSTEM SPECIAL TAX NOTICE REGARDING ROLLOVER OPTIONS

STATE OF HAWAII EMPLOYEES RETIREMENT SYSTEM SPECIAL TAX NOTICE REGARDING ROLLOVER OPTIONS ERS Notice 402(f) (1/2010) STATE OF HAWAII EMPLOYEES RETIREMENT SYSTEM SPECIAL TAX NOTICE REGARDING ROLLOVER OPTIONS You are receiving this notice because all or a portion of a payment you are eligible

More information

Janus Qualified Retirement Accounts Distribution Form

Janus Qualified Retirement Accounts Distribution Form Janus Qualified Retirement Accounts Distribution Janus Qualified PO Box 55932 Form Retirement Accounts Distribution Form Boston, MA 02205-5932 800-525-1093 PO Box 55932 Boston, MA 02205-5932 800-525-1093

More information

Roth 401(k) Plans BENEFITS FOR EMPLOYEE-PARTICIPANTS ROTH 401(K) REQUIREMENTS

Roth 401(k) Plans BENEFITS FOR EMPLOYEE-PARTICIPANTS ROTH 401(K) REQUIREMENTS ELIZABETH THOMAS DOLD AND DAVID N. LEVINE, GROOM LAW GROUP, CHARTERED This Note provides an overview of Roth 401(k) plans, also known as designated Roth plans. It discusses the benefits of providing employees

More information

Directly Rolling Over Inherited 401(k) Funds.

Directly Rolling Over Inherited 401(k) Funds. Directly Rolling Over Inherited 401(k) Funds. A financial institution will have current customers who will inherit a brother s, sister s, parent s, or child s 401(k). Commencing on January 1, 2009, it

More information

In-plan Roth conversions: An overview of changes from ATRA 2012

In-plan Roth conversions: An overview of changes from ATRA 2012 In-plan Roth conversions: An overview of changes from ATRA 2012 Vanguard research May 2013 Executive summary. The American Taxpayer Relief Act of 2012 (ATRA), signed into law on January 2, 2013, expands

More information

Special Tax Notice (This notice is required by the Internal Revenue Service.)

Special Tax Notice (This notice is required by the Internal Revenue Service.) Special Tax Notice (This notice is required by the Internal Revenue Service.) YOUR ROLLOVER OPTIONS You are receiving this notice because all or a portion of a payment you are receiving from your employer

More information

Retirement Plan Distributions

Retirement Plan Distributions Retirement Plan Distributions What Every Participant Should Know IRS Employee Plans 2 Employee Plans Landing Page 3 Employee Plans Newsletters Distribution Topics 2015 IRA one-rollover rule Pre and post-tax

More information

YOUR ROLLOVER OPTIONS GENERAL INFORMATION ABOUT ROLLOVERS

YOUR ROLLOVER OPTIONS GENERAL INFORMATION ABOUT ROLLOVERS SPECIAL TAX NOTICE REGARDING PAYMENTS FROM QUALIFIED PLANS YOUR ROLLOVER OPTIONS You are receiving this notice because all or a portion of a payment you are receiving from your Employer s plan (the "Plan")

More information

Table of Contents. Section 1. Introduction Entities...2 IRS Approval...2

Table of Contents. Section 1. Introduction Entities...2 IRS Approval...2 37788 X (1/16) Table of Contents Section 1. Introduction Entities...2 IRS Approval...2 Section 2. Right to revoke your IRA Revocation... 3 Section 3. Contributions Funding your IRA with new contributions...

More information

Vantagepoint. Complement Your Public Sector Retirement Savings With a Vantagepoint Payroll Roth IRA

Vantagepoint. Complement Your Public Sector Retirement Savings With a Vantagepoint Payroll Roth IRA Vantagepoint Payroll IRA Complement Your Public Sector Retirement Savings With a Vantagepoint Payroll Roth IRA Introduction An Individual Retirement Account (IRA) is one of the best ways for individuals

More information

FAQs REGARDING DESIGNATED ROTH ACCOUNTS

FAQs REGARDING DESIGNATED ROTH ACCOUNTS FAQs REGARDING DESIGNATED ROTH ACCOUNTS These frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed

More information

The Federal Thrift Savings Plan

The Federal Thrift Savings Plan Vertex Wealth Management, LLC Michael J. Aluotto, CRPC President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com www.vertexwm.com The Federal

More information

Roth IRAs The Roth IRA

Roth IRAs The Roth IRA Roth IRAs The Roth IRA 2014 and 2015 Questions & Answers What is a Roth Individual Retirement Account (Roth IRA)? A Roth IRA is a type of tax-preferred savings and investment account authorized by Internal

More information

Special tax notice regarding plan payments

Special tax notice regarding plan payments Special tax notice regarding plan payments You are receiving this notice because all or a portion of a payment you are receiving from your employer s retirement plan (the Plan ) is eligible to be rolled

More information

Roth IRAs. Why Should I Convert My Traditional IRA into a Roth IRA? Questions & Answers

Roth IRAs. Why Should I Convert My Traditional IRA into a Roth IRA? Questions & Answers Roth IRAs Why Should I Convert My Traditional IRA into a Roth IRA? Questions & Answers Purpose of a Roth IRA Conversion Contribution If a person has a traditional IRA, federal income tax laws allow you

More information

GENERAL INCOME TAX INFORMATION

GENERAL INCOME TAX INFORMATION NEW YORK STATE TEACHERS RETIREMENT SYSTEM GENERAL INCOME TAX INFORMATION TABLE OF CONTENTS Taxes on Loans from the Annuity Savings Fund 1 (Tier 1 and 2 Members Only) Taxes on the Withdrawal of the Annuity

More information

Thrift Savings Plan. Plan Overview. Investment Options. Contribution Limits. Withdrawal Options

Thrift Savings Plan. Plan Overview. Investment Options. Contribution Limits. Withdrawal Options Plan Overview Investment Options Contribution Limits Withdrawal Options (TSP) Contents Investment Options... Life Cycle Funds... TSP Contributions - Tax Treatment... Agency Contributions... Over 50 Catch-up

More information

Don and Barb Barringer

Don and Barb Barringer Don and Barb Barringer ROTH CONVERSION January 14, 2014 Each Financial Concept Presentation starts with a professional cover page providing your client with important contact information. PREPARED BY:

More information

Part III. Administrative, Procedural and Miscellaneous. Guidance on In-Plan Roth Rollovers. Notice 2010-84 I. PURPOSE

Part III. Administrative, Procedural and Miscellaneous. Guidance on In-Plan Roth Rollovers. Notice 2010-84 I. PURPOSE Part III. Administrative, Procedural and Miscellaneous Guidance on In-Plan Roth Rollovers Notice 2010-84 I. PURPOSE This notice provides guidance under 402A(c)(4) of the Internal Revenue Code, relating

More information

Your guide to Roth 457 contributions

Your guide to Roth 457 contributions THE OREGON SAVINGS GROWTH PLAN PRESENTS Your guide to Roth 457 contributions Wonderful new feature this year Exciting. Thrilling. Fantastic. Best thing to hit the Pacific Northwest! What s in a name? That

More information

Distribution Options for IRA Beneficiaries. Choose the option that s best for you

Distribution Options for IRA Beneficiaries. Choose the option that s best for you Distribution Options for IRA Beneficiaries Choose the option that s best for you Let Us Help You Make An Informed Decision Before you begin It s important to understand your choices and the best options

More information

SUMMARY OF FEDERAL INCOME TAX RULES RELATING TO DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS

SUMMARY OF FEDERAL INCOME TAX RULES RELATING TO DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS SUMMARY OF FEDERAL INCOME TAX RULES RELATING TO DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS BASED ON SAFE HARBOR NOTICE PER IRS NOTICE 2014-74 (Rev. November 2014) SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS

More information

SPECIAL TAX NOTICE YOUR ROLLOVER OPTIONS

SPECIAL TAX NOTICE YOUR ROLLOVER OPTIONS SPECIAL TAX NOTICE YOUR ROLLOVER OPTIONS You are receiving this notice because all or a portion of a payment you are receiving from the Plan is eligible to be rolled over to either an IRA or an employer

More information

New law provides additional designated Roth contribution options

New law provides additional designated Roth contribution options Important information Plan design October 2010 New law provides additional designated Roth contribution options Who s affected This information applies to sponsors of and participants in 401(k) plans,

More information

The WDC Roth Option. Is It Right for You? April, 2012

The WDC Roth Option. Is It Right for You? April, 2012 The WDC Roth Option Is It Right for You? 1 April, 2012 Roth A type of retirement account, in which contributions are subject to income taxes, but qualified distributions are not 2 Representatives of GWFS

More information

Roth IRAs. Why Should I Convert Traditional IRA Funds into a Roth IRA? Questions & Answers

Roth IRAs. Why Should I Convert Traditional IRA Funds into a Roth IRA? Questions & Answers Roth IRAs Why Should I Convert Traditional IRA Funds into a Roth IRA? Questions & Answers Why is now the right time? Marginal income tax rates are relatively low on a historical basis. The sooner you do

More information

Traditional and Roth IRAs

Traditional and Roth IRAs Traditional and Roth IRAs Information Kit, Disclosure Statement and Custodial Agreement NOT FDIC INSURED \ NO BANK GUARANTEE \ MAY LOSE VALUE FRM-IRADISC(1/11) State Street Bank and Trust Company Universal

More information

401(k) Plan for your retirement and achieve your financial goals.

401(k) Plan for your retirement and achieve your financial goals. 401(k) Plan for your retirement and achieve your financial goals. Index Quick Index Contributions and Vesting Pages 1-3 Loans Page 4 Distributions/Withdrawals Pages 5-6 Beneficiaries Page 7 Roth 401(k)

More information

TO ROTH OR NOT TO ROTH, THAT IS THE QUESTION

TO ROTH OR NOT TO ROTH, THAT IS THE QUESTION TO ROTH OR NOT TO ROTH, THAT IS THE QUESTION J. Scott Dillon Carruthers & Roth, P.A. 235 N. Edgeworth Street Greensboro, NC 27401 336.478.1119 jsd@crlaw.com OVERVIEW The Rules Roth IRA Roth 401(k) Roth

More information

Franklin Templeton Investments Retirement Plan Overview. Reference Guide

Franklin Templeton Investments Retirement Plan Overview. Reference Guide Franklin Templeton Investments Retirement Plan Overview Reference Guide May Be Suitable For Features Eligibility Requirements Plan Contribution Limits Deadline to Set Up/Contribute Distributions Traditional

More information

Understanding IRAs. Thad Johnson, AIF, MBA 222 2nd Ave SE Hutchinson, MN 55350 320-587-3444 thad.johnson@flagship-advisors.com

Understanding IRAs. Thad Johnson, AIF, MBA 222 2nd Ave SE Hutchinson, MN 55350 320-587-3444 thad.johnson@flagship-advisors.com Thad Johnson, AIF, MBA 222 2nd Ave SE Hutchinson, MN 55350 320-587-3444 thad.johnson@flagship-advisors.com Understanding IRAs Page 1 of 5, see disclaimer on final page Understanding IRAs An individual

More information

TERMINATION FORM - 206

TERMINATION FORM - 206 TERMINATION FORM - 206 Participant must be provided with the Special Tax Notice Regarding Plan Payments. I INSTRUCTIONS The Termination Form is used to process all types of plan distributions due to termination

More information

Roth IRA. Answers. To Your. Questions

Roth IRA. Answers. To Your. Questions Roth IRA Answers To Your Questions A wealth of information to plan your future The Roth IRA offers unique and exciting savings opportunities. Not only can it help with retirement needs, but also a first-time

More information

Payout Guide A GUIDE TO OPTIONS FOR YOUR STATE OF MICHIGAN 401(K) AND 457 PLAN ACCOUNTS. 1-800-748-6128 http://stateofmi.ingplans.

Payout Guide A GUIDE TO OPTIONS FOR YOUR STATE OF MICHIGAN 401(K) AND 457 PLAN ACCOUNTS. 1-800-748-6128 http://stateofmi.ingplans. Payout Guide A GUIDE TO OPTIONS FOR YOUR STATE OF MICHIGAN 401(K) AND 457 PLAN ACCOUNTS 1-800-748-6128 http://stateofmi.ingplans.com State of Michigan 401(k) and 457 Plan Participant: You ve worked hard

More information

Taking Your Required Minimum Distributions

Taking Your Required Minimum Distributions RETIREMENT Taking Your Required Minimum Distributions A Guide for Retirement Account Owners and Beneficiaries Taking Distributions During Your Lifetime Most people are required to start withdrawing from

More information

THE TAXABILITY AND MANDATORY WITHHOLDING OF INCOME TAX FROM YOUR PENSION DISTRIBUTION

THE TAXABILITY AND MANDATORY WITHHOLDING OF INCOME TAX FROM YOUR PENSION DISTRIBUTION FA-0272-0313 Fact Sheet #27 THE TAXABILITY AND MANDATORY WITHHOLDING OF INCOME TAX FROM YOUR PENSION DISTRIBUTION All Funds This fact sheet summarizes only the federal (not state or local) tax rules that

More information

COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION

COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION 1. EMPLOYEE INFORMATION (Please print) COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION Name: Address: Social Security No.: Birth Date: City: State: Zip: Termination

More information

Retirement 4: Individual Retirement and Small Business Plans

Retirement 4: Individual Retirement and Small Business Plans Personal Finance: Another Perspective Classroom Slides: Retirement 4: Individual Retirement and Small Business Plans Updated 2014/03/13 Objectives A. Understand Individual Retirement Accounts (IRAs) B.

More information

IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you?

IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you? IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you? Now more than ever, an Individual Retirement Account (IRA) may help provide

More information

A NEW WAY TO SAVE FOR RETIREMENT INTRODUCING THE ROTH OPTION C46803

A NEW WAY TO SAVE FOR RETIREMENT INTRODUCING THE ROTH OPTION C46803 A NEW WAY TO SAVE FOR RETIREMENT INTRODUCING THE ROTH OPTION C46803 TODAY S DISCUSSION 1. WHAT IS THE ROTH OPTION? 2. WHO MIGHT BENEFIT? 3. CONTRIBUTION LIMITS 4. DISTRIBUTION AND ROLLOVER OPTIONS 5. WHAT

More information

Thrift Savings Plan (TSP)

Thrift Savings Plan (TSP) (TSP) TSP Contributions Catch-up Contributions Outstanding Loans Withdrawal Options TSP Publications Spouses Rights 2006, J.P.McGehrin & Associates, Inc.. All rights reserved. No part of this publication

More information

NATIONAL WESTERN LIFE INSURANCE COMPANY YOUR ROLLOVER OPTIONS

NATIONAL WESTERN LIFE INSURANCE COMPANY YOUR ROLLOVER OPTIONS NATIONAL WESTERN LIFE INSURANCE COMPANY YOUR ROLLOVER OPTIONS This notice explains how you can continue to defer federal income tax on your retirement savings and contains important information you will

More information

1099R BOX DESCRIPTIONS

1099R BOX DESCRIPTIONS For additional details and instructions refer to IRS 1099R Instructions 1 Gross Distribution Enter the total amount of the distribution before income tax or other deductions were withheld. This can include:

More information

How much can I deduct if I am an active participant in a qualified plan?... 2

How much can I deduct if I am an active participant in a qualified plan?... 2 Table of Contents What is an Individual Retirement Account (IRA)?...................................... 1 Who may establish a Traditional IRA?............................................... 1 How much

More information

The National Association of Government Defined Contribution Administrators, Inc. (NAGDCA) presents 2010 NAGDCAST #3: The Roth 457 is Here: Now What?

The National Association of Government Defined Contribution Administrators, Inc. (NAGDCA) presents 2010 NAGDCAST #3: The Roth 457 is Here: Now What? The National Association of Government Defined Contribution Administrators, Inc. (NAGDCA) presents 2010 NAGDCAST #3: The Roth 457 is Here: Now What? 1 Program Introduction Dean Weltman Plan Compliance

More information

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency Understanding iras A Summary of Individual Retirement Accounts No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 1/15 23038-15A Contents

More information

Deferred Retirement Option Plan (DROP)

Deferred Retirement Option Plan (DROP) Deferred Retirement Option Plan (DROP) Any Group G member who meets the requirements for a normal retirement may elect to participate in the DROP for up to three years. Sick leave may be used as credited

More information

Leaving your employer? Options for your retirement plan

Leaving your employer? Options for your retirement plan Leaving your employer? Options for your retirement plan Contents Evaluating your options 1 The benefits of tax-deferred investing 4 Flexibility offered by an IRA rollover 6 How to get started 9 Evaluating

More information

Considering Inherited IRA Rollovers for Non-spouse Beneficiaries by Mark E. Griffin

Considering Inherited IRA Rollovers for Non-spouse Beneficiaries by Mark E. Griffin Considering Inherited IRA Rollovers for Non-spouse Beneficiaries by Mark E. Griffin After an employee participant in a section 403(b) contract 1 dies, the employee s entire interest in the plan must be

More information

Converting taxable income into tax-free income

Converting taxable income into tax-free income Converting taxable income into tax-free income Important information for people who still own a traditional IRA Consider the future impact of your IRA Do you own a traditional IRA? Many people nearing

More information

A Primer on IRAs. History

A Primer on IRAs. History A Primer on IRAs This essay was originally published in Muhlenkamp Memorandum Issue 107, July 2013. It was the third essay of the series, The FRIDAY FOCUS on Retirement by Susen Friday, Client Service

More information

Distribution Request Form

Distribution Request Form Distribution Request Form READ THE ATTACHED IRS SPECIAL TAX NOTICE: IF YOUR PLAN ALLOWS FOR AN ANNUITY OPTION, READ THE WRITTEN EXPLANATION OF QUALIFIED JOINT AND 50% CONTINGENT SURVIVOR ANNUITY FORM OF

More information

EMPLOYEES RETIREMENT SYSTEM OF THE CITY OF NORFOLK SPECIAL TAX NOTICE Revised March 2016

EMPLOYEES RETIREMENT SYSTEM OF THE CITY OF NORFOLK SPECIAL TAX NOTICE Revised March 2016 EMPLOYEES RETIREMENT SYSTEM OF THE CITY OF NORFOLK SPECIAL TAX NOTICE Revised March 2016 YOUR ROLLOVER OPTIONS You are receiving this notice because all or a portion of a payment you are receiving from

More information

Traditional IRA/Roth IRA

Traditional IRA/Roth IRA premiere select Traditional IRA/Roth IRA Invest in your retirement today. Saving for your retirement. 01 Important Section in head any lorem market. ipsum dolore sit amet If you re planning for your future,

More information

Special Tax Notice Regarding Plan Payments (IRS Safe Harbor Notice)

Special Tax Notice Regarding Plan Payments (IRS Safe Harbor Notice) Your Rollover Options Special Tax Notice Regarding Plan Payments (IRS Safe Harbor Notice) You are receiving this notice because all or a portion of a payment you are receiving from Seattle Employees Retirement

More information

Farm Credit Foundations Defined Contribution/ 401(k) Plan. Roth 401(k) Farm Credit Foundations. Passionately and Tenaciously Creating HR Solutions!

Farm Credit Foundations Defined Contribution/ 401(k) Plan. Roth 401(k) Farm Credit Foundations. Passionately and Tenaciously Creating HR Solutions! Farm Credit Foundations Farm Credit Foundations Defined Contribution/ 401(k) Plan Passionately and Tenaciously Creating HR Solutions! Roth 401(k) Passionately www.farmcreditfoundations.com and Tenaciously

More information

IRAs: TRADITIONAL OR ROTH?

IRAs: TRADITIONAL OR ROTH? IRAs: TRADITIONAL OR ROTH? There are many factors to consider before deciding which IRA is right for you. Written by: Kyle Quinn, CFP, CLU, CDFA TM The idea of tax-advantaged accounts for retirement savings

More information