On Dec 20, 8:17*pm, ed <edcos...[at]sbcglobal.net> wrote:
- quote -

In my last post I misstated. The word *unless* should be *if*.
That is, you don't have to combine them if they are separate plans or
employers.

A note> You cannot use a form 4972 for an IRA, only Pension, Profit
Sharing and 401K plans

ed

On Dec 20, 5:24*pm, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

Yes you can take a 4972 lump sum distribution ONCE from this Keough
Plan at very attractive tax rates. Get IRS form 4972 and its
instructions, which are similar to Publication 17 page 74 et al.. Do
not be confused with the "only once per plan participant" garbage.
You are a spearate "plan participant" for EACH plan you have and Do
Not have to combine them (unless they ARE seperate plans and/or
employers. Each polan can be on a separate 4972.

ed.

In article <siegman-B6DAA3.12042820122007[at]nntp.stanford.edu> ,
AES <siegman[at]stanford.edu> wrote:
- quote -



Could be.

See page 74 of http://www.irs.gov/pub/irs-pdf/p17.pdf and take
it from there.

Try it and see the results.

--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

I'm age 76. retired, have substantial tax deferred TIAA-CREF retirement
accounts or IRAs with associated Minimum Distributions each year. Also
still doing some paid consulting, some royalty and rental property
income, so in the top tax bracket on all this income.

One of the TIAA-CREF accounts is a small "single person" Keogh Plan,
into which I still make small contributions each year, based on the
consulting and book royalty income for that year.

Does the "file a Form 4972 and take a Lump Sum Distribution" theme that
has emerged in this thread have any relevance to me, now or later?
(I've never heard of this previously.)

In article <7Uiaj.20036$k27.11047[at]bignews2.bellsouth.net> ,
Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -


The beneficiary of a qualified employer plan can qualify for form
4972 with a full lump sum distribution, assuming mother in law did.


The words "or any amount" above implies it would not meet lump sum
rules. But if it were really lump sum it might.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

ed wrote:
- quote -

If you look at the OP, you'll see it's from am fellow whose 90 year old
mother IN LAW died last year. For him to qualify, he must have been the
beneficiary of her plan; not just heir to her estate.

Or at least that's the way I read it. Actually I've never had a case
like this anyway.

Christmas ChEAr$,
Harlan Lunsford, EA n LA

On Dec 19, 6:44 pm, Harlan Lunsford <hnslunsf...[at]bellsouth.net> wrote:
- quote -

So, Harlan, what's wrong with a 4972? wouldn't you at least advise
your client it is an available option? A $150K Keough is taxed
$24,570, or 16.38% with a 4972. That would look pretty good to
someone in the 25% bracket. It has other advantages, also. It
doesn't go on your AGI to afffect many credits' phaseouts, AMT, SS
taxability, etc.

ed

ed wrote:
- quote -

YOu're advising OP to use a form 4972? THIS, I got to see.

Christmas ChEAr$,
Harlan Lunsford, EA n LA

On Dec 17, 1:54 pm, Harlan Lunsford <hnslunsf...[at]bellsouth.net> wrote:
- quote -

you will pay ordinary income tax at your tax bracket on any amount
that was not an after-tax contibution. For small amounts, and
particularly if you are in the 25% tax braket or higher (or would be
by cashing in the Keough) I suggest you get form 4972 and take a Lump
Sum Distribution as the taxes for that are not based on your tax
bracket and may be considerably less than paying ordinary income tax
on withdrawals.

ed.

KSB wrote:
- quote -

Don't confuse any income tax she might owe on her final return with any
income pertinent to the Keough plan and bonds which you inherited.

In the first case, those dedutions she had are taken only against any
income she might have had before she passed on.

As for the main assets, you as heir pay the taxes.

ChEAr$,
Harlan Lunsford, EA n LA

On Dec 16, 9:27 pm, "KSB" <nos...[at]optonline.net> wrote:
- quote -

Unless the HH bonds have inscribed on the face that there is deferred
interest, there is no tax problem. HH bonds pay interest every 6
months and were bought at face value, unlike EE bonds which were
baought at discount and accured interest. Keogh funds I can't answer.

My mother law recently passed at age 90. She had over $50000 cash value in
HH bonds and a Keogh plan. I am well aware of the taxes due on these funds.
However, in 2007 she had significant deductions which would more the offset
any taxes due. Question? Do I have to redeem these bonds and Keogh funds in
calendar 2007 or can I wait until early 2008 and still include them in 2007
income. There are no legal issues just time constraints. I am the sole hair
and executor.

KSB