Rollover Confusion

Financial Planning, March, 2008 by Ed Slott

In the January issue (which went to press in early December), I said that the Internal Revenue Service had reversed its position, and was now requiring company retirement plans to allow non-spouse rollovers in 2008. Not so fast! On Dec. 29, 2007, President Bush signed The Tax Technical Corrections Act of 2007 into law (H.R. 4839) as expected. But mysteriously, it doesn't include the provision making the non-spouse rollover mandatory for 2008. Then in January 2008, the IRS released Publication 590 on IRAs, noting that the provision is effective, but there is no mention of whether it's mandatory or optional. It's enough to give a planner a headache.

So what's the rule on non-spouse rollovers from company plans under the Pension Protection Act (PPA) of 2006? Do company plans...

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