Análisis del Instrumento de Observación del Proceso de

IRAs and Divorces or Legal Separations

·

IRAs can only be transferred to an ex-spouse’s IRA · Decree must be specific

· How, How much, When, etc.

· Have IRA’s (former) owner complete distribution form

Trustee-to-Trustee Transfer

CANNOT be done as a distribution and a rollover. -Court order may be needed to correct.

47 CWF Form # 57-R CWF Form # 57

Trustee-to-Trustee Transfer

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OLLOVERS

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NTO AN

IRA

May generate large Deposits

Special administrative procedures apply since IRA plan agreement authorizes contributions larger than $5,000 or $6,000 only if the contribution is a SEP contribution, recharacterization or a qualifying rollover.

Rollovers from employer plans

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OLLOVER

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TATISTICS

Number of Taxpayers Rollover Amounts (1,000’s) Average 2004 3,636,027 $214,878,446 $59,097 2005 3,754,759 $228,495,888 $60,855 2006 4,150.140 $281,976,971 $67,944 2007 4,478,322 $316,646,832 $70,707 2008 5,609,522 $272,104,973 $48,508 Total 21,628,770 $1,314,103,110 $60,757 Observations

1. Over the 5-year period, 1.3 trillion of assets were rolled into traditional IRAs from 401(k) plans, other pension plans, and other traditional IRAs.

2. The annual rollover amount is 263 billion on average

3. The average per person rollover amount is $60,757 over the 5-year period

4. The 2008 recession is again evident. A large increase in the number of persons making a rollover contribution and a substantial decrease ($48,508 on average) in the amount being rolled over. Very likely the difference was taken as a taxable distribution and used for current living expenses. 5. At this point the IRS is not reporting separately rollovers into Roth IRAs from other Roth IRAs. Now

that funds can be rolled over into Roth IRAs from 401(k) plans one can expect that such rollovers will be reported in future statistical reports.

End-of-Year Fair Market Value 2008

Number of Taxpayers FMV Amount Percent

Traditional 43,054,097 $3,257,294,689 88.49 End-of-Year Fair Market values for IRAs for 2004-2008

The following charts show the fair market values for traditional IRAs, Roth IRAs, SEP-IRAs and SIMPLE- IRAs. These amounts do vary. They were certainly impacted by the economic recession of 2008. The annual percentages surprising stay quite constant:

Traditional IRAs 88.5% SEP-IRAs 5.5% SIMPLE-IRAs 1.2% Roth IRAs 4.8% Total 100.00%

The FMC charts below show that the FMV for all IRAs was 3.7 trillion as of December 31, 2008. The

DOL reported this value as being 4.7 trillion as of December 31, 2010 as the economy and the markets

did improve during 2010.

Forms 1040, 5329 and 8606

Forms 5498 and 1099-R

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EPORTING OF

IRA R

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ONTRIBUTIONS

From pension plans to an IRA

50000.00 0.00

X

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EPORTING OF

IRA R

OLLOVER

C

ONTRIBUTIONS 50000.00 50000.00 X 1 or 7 X 0.00

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EPORTING OF

IRA R

OLLOVER

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ONTRIBUTIONS

From an IRA to an IRA (Roth)

50000.00

X

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EPORTING OF

IRA R

OLLOVER

C

ONTRIBUTIONS

2012 Instructions for Form 5498

The IRS has created the Form 5498 and requires the IRA custodian to prepare and file it, because it will assist the IRS in determining if an individual has properly reflected on his or her federal income tax return the contributions he or she claims being made on his or her tax return.

Rollover contributions are reported in box 2. IRA type is checked in box 7.

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EPORTING OF

IRA R

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ONTRIBUTIONS

2012 Instructions for Form 5498

Note that the Form 5498, in addition to reporting contributions is used to report the IRA’s fair market value as of December 31. Filing a Form 5409 is required for a person who is no longer eligible to make annual contributions (i.e. he or she must receive a RMD). The fact that an IRA is revoked or close under special account closure rules does not negate the requirement that the contribution be reported on the Form 5498.

50000.00

50600.00 X

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IRA R

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ONTRIBUTIONS

2012 Instructions for Form 5498

The IRS can and will assess a penalty of $50 per form when a Form 5498 is prepared incorrectly, late or not at all.

When must a Form 5498 be prepared ?

• The individual has made one or more reportable contributions

• The FMV is greater than 0.00 as of December 31. That is, box 5 needs to be completed.

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IRA R

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ONTRIBUTIONS

2012 Instructions for Form 5498

All IRA contributions are reportable, except true direct transfer contributions are not. The IRS instructions do not define the conditions which must be met to have a direct transfer.

The IRS defines a direct transfer as occurring between the two IRA trustees and as 1. A Traditional IRA to a Traditional IRA or a SEP-IRA

2. A SEP-IRA to a SEP IRA or a Traditional IRA 3. A Simple-IRA to a SIMPLE-IRA

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ONTRIBUTIONS

2012 Instructions for Form 5498

Reportable IRA Contributions are annual contributions, recharacterizations, Roth conversions, rollovers, postponed contributions and repayments, and transfer contributions other than defined above.

• Purpose

• Usually to move IRA assets from one IRA to another IRA

• Rollover can be brought back to the same IRA

• Requirements

• One rollover per IRA, per 12-month period (not per investment)

• IRA Assets must be deposited into IRA within 60 calendar days

• A required distribution is ineligible to be rolled over.

• Check/Draft/Wire is normally made payable to the IRA accountholder

• The same property must be rolled over. If property is distributed to you from an IRA and you complete the rollover by contributing property to an IRA, your rollover is tax-free only if the property you contribute is the same property that was distributed to you. You are unable to sell the property distributed and rollover the proceeds.

• A distribution from an inherited IRA to a non – spouse beneficiary is ineligible to be rolled over.

In document La aplicación de la NIC 41 en la actividad agrícola del cultivo del cacao en la provincia del Guayas (página 61-64)