Excess IRA Contribution – Is this Bad? Typically, an excess IRA contribution is the amount that you contribute to your Traditional IRA and Roth IRA for…
For 2010 and 2011, the most that an individual can contribute to a traditional IRA or Roth IRA generally is the smaller of
A distribution from a designated Roth account must be reported on Form 1099–R,
The plan administrator is responsible for keeping track of the amount of designated Roth contributions made
When an employee rolls over a distribution from a designated Roth account in a 401(k) or 403(b) plan to a Roth IRA, the period that the rolled-over funds were in the designated Roth account does not count toward the 5-taxable-year period
A distribution from a designated Roth account that consists of both pre-tax money (earnings on the Roth contributions) and basis (Roth contributions), must be rolled over into a designated Roth account in another plan through a direct rollover.
Employees can contribute to both a designated Roth account and a traditional, pre-tax account in the same year
A designated Roth contribution is a type of elective deferral that an employee can make to a §401(k) or 403(b) plan.
On November 26, 2010, the IRS issued Notice 2010-84 containing guidance for 401(k) and 403(b) plans about in-plan Roth rollovers
The qualified charitable distribution provisions were renewed for 2010 and 2011, allowing individuals age 70½ or over to exclude from gross income up to $100,000 that is paid directly from their IRA or 401K