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Irs 1040ez Instructions

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Irs 1040ez Instructions

Irs 1040ez instructions 1. Irs 1040ez instructions   403(b) Plan Basics Table of Contents What Is a 403(b) Plan? What Are the Benefits of Contributing to a 403(b) Plan?Excluded. Irs 1040ez instructions Deducted. Irs 1040ez instructions Who Can Participate in a 403(b) Plan?Ministers. Irs 1040ez instructions Who Can Set Up a 403(b) Account? How Can Contributions Be Made to My 403(b) Account? Do I Report Contributions on My Tax Return? How Much Can Be Contributed to My 403(b) Account? This chapter introduces you to 403(b) plans and accounts. Irs 1040ez instructions Specifically, the chapter answers the following questions. Irs 1040ez instructions What is a 403(b) plan? What are the benefits of contributing to a 403(b) plan? Who can participate in a 403(b) plan? Who can set up a 403(b) account? How can contributions be made to my 403(b) account? Do I report contributions on my tax return? How much can be contributed to my 403(b) account? What Is a 403(b) Plan? A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers. Irs 1040ez instructions Individual accounts in a 403(b) plan can be any of the following types. Irs 1040ez instructions An annuity contract, which is a contract provided through an insurance company, A custodial account, which is an account invested in mutual funds, or A retirement income account set up for church employees. Irs 1040ez instructions Generally, retirement income accounts can invest in either annuities or mutual funds. Irs 1040ez instructions We use the term “403(b) account” to refer to any one of these funding arrangements throughout this publication, unless otherwise specified. Irs 1040ez instructions What Are the Benefits of Contributing to a 403(b) Plan?  There are three benefits to contributing to a 403(b) plan. Irs 1040ez instructions The first benefit is that you do not pay income tax on allowable contributions until you begin making withdrawals from the plan, usually after you retire. Irs 1040ez instructions Allowable contributions to a 403(b) plan are either excluded or deducted from your income. Irs 1040ez instructions However, if your contributions are made to a Roth contribution program, this benefit does not apply. Irs 1040ez instructions Instead, you pay income tax on the contributions to the plan but distributions from the plan (if certain requirements are met) are tax free. Irs 1040ez instructions Note. Irs 1040ez instructions Generally, employees must pay social security and Medicare tax on their contributions to a 403(b) plan, including those made under a salary reduction agreement. Irs 1040ez instructions See chapter 4, Limit on Elective Deferrals , for more information. Irs 1040ez instructions The second benefit is that earnings and gains on amounts in your 403(b) account are not taxed until you withdraw them. Irs 1040ez instructions Earnings and gains on amounts in a Roth contribution program are not taxed if your withdrawals are qualified distributions. Irs 1040ez instructions Otherwise, they are taxed when you withdraw them. Irs 1040ez instructions The third benefit is that you may be eligible to take a credit for elective deferrals contributed to your 403(b) account. Irs 1040ez instructions See chapter 10, Retirement Savings Contributions Credit (Saver's Credit) . Irs 1040ez instructions Excluded. Irs 1040ez instructions   If an amount is excluded from your income, it is not included in your total wages on your Form W-2. Irs 1040ez instructions This means that you do not report the excluded amount on your tax return. Irs 1040ez instructions Deducted. Irs 1040ez instructions   If an amount is deducted from your income, it is included with your other wages on your Form W-2. Irs 1040ez instructions You report this amount on your tax return, but you are allowed to subtract it when figuring the amount of income on which you must pay tax. Irs 1040ez instructions Who Can Participate in a 403(b) Plan? Any eligible employee can participate in a 403(b) plan. Irs 1040ez instructions Eligible employees. Irs 1040ez instructions   The following employees are eligible to participate in a 403(b) plan. Irs 1040ez instructions Employees of tax-exempt organizations established under section 501(c)(3). Irs 1040ez instructions These organizations are usually referred to as section 501(c)(3) organizations or simply 501(c)(3) organizations. Irs 1040ez instructions Employees of public school systems who are involved in the day-to-day operations of a school. Irs 1040ez instructions Employees of cooperative hospital service organizations. Irs 1040ez instructions Civilian faculty and staff of the Uniformed Services University of the Health Sciences. Irs 1040ez instructions Employees of public school systems organized by Indian tribal governments. Irs 1040ez instructions Certain ministers (explained next). Irs 1040ez instructions Ministers. Irs 1040ez instructions   The following ministers are eligible employees for whom a 403(b) account can be established. Irs 1040ez instructions Ministers employed by section 501(c)(3) organizations. Irs 1040ez instructions Self-employed ministers. Irs 1040ez instructions A self-employed minister is treated as employed by a tax-exempt organization that is a qualified employer. Irs 1040ez instructions Ministers (chaplains) who meet both of the following requirements. Irs 1040ez instructions They are employed by organizations that are not section 501(c)(3) organizations. Irs 1040ez instructions They function as ministers in their day-to-day professional responsibilities with their employers. Irs 1040ez instructions   Throughout this publication, the term chaplain will be used to mean ministers described in the third category in the list above. Irs 1040ez instructions Example. Irs 1040ez instructions A minister employed as a chaplain by a state-run prison and a chaplain in the United States Armed Forces are eligible employees because their employers are not section 501(c)(3) organizations and they are employed as ministers. Irs 1040ez instructions Who Can Set Up a 403(b) Account? You cannot set up your own 403(b) account. Irs 1040ez instructions Only employers can set up 403(b) accounts. Irs 1040ez instructions A self-employed minister cannot set up a 403(b) account for his or her benefit. Irs 1040ez instructions If you are a self-employed minister, only the organization (denomination) with which you are associated can set up an account for your benefit. Irs 1040ez instructions How Can Contributions Be Made to My 403(b) Account? Generally, only your employer can make contributions to your 403(b) account. Irs 1040ez instructions However, some plans will allow you to make after-tax contributions (defined below). Irs 1040ez instructions The following types of contributions can be made to 403(b) accounts. Irs 1040ez instructions Elective deferrals . Irs 1040ez instructions These are contributions made under a salary reduction agreement. Irs 1040ez instructions This agreement allows your employer to withhold money from your paycheck to be contributed directly into a 403(b) account for your benefit. Irs 1040ez instructions Except for Roth contributions, you do not pay income tax on these contributions until you withdraw them from the account. Irs 1040ez instructions If your contributions are Roth contributions, you pay taxes on your contributions but any qualified distributions from your Roth account are tax free. Irs 1040ez instructions Nonelective contributions . Irs 1040ez instructions These are employer contributions that are not made under a salary reduction agreement. Irs 1040ez instructions Nonelective contributions include matching contributions, discretionary contributions, and mandatory contributions from your employer. Irs 1040ez instructions You do not pay income tax on these contributions until you withdraw them from the account. Irs 1040ez instructions After-tax contributions . Irs 1040ez instructions These are contributions (that are not Roth contributions) you make with funds that you must include in income on your tax return. Irs 1040ez instructions A salary payment on which income tax has been withheld is a source of these contributions. Irs 1040ez instructions If your plan allows you to make after-tax contributions, they are not excluded from income and you cannot deduct them on your tax return. Irs 1040ez instructions A combination of any of the three contribution types listed above. Irs 1040ez instructions Self-employed minister. Irs 1040ez instructions   If you are a self-employed minister, you are considered both an employee and an employer, and you can contribute to a retirement income account for your own benefit. Irs 1040ez instructions Do I Report Contributions on My Tax Return? Generally, you do not report contributions to your 403(b) account (except Roth contributions) on your tax return. Irs 1040ez instructions Your employer will report contributions on your 2013 Form W-2. Irs 1040ez instructions Elective deferrals will be shown in box 12 and the Retirement plan box will be checked in box 13. Irs 1040ez instructions If you are a self-employed minister or chaplain, see the discussions next. Irs 1040ez instructions Self-employed ministers. Irs 1040ez instructions   If you are a self-employed minister, you must report the total contributions as a deduction on your tax return. Irs 1040ez instructions Deduct your contributions on line 28 of the 2013 Form 1040. Irs 1040ez instructions Chaplains. Irs 1040ez instructions   If you are a chaplain and your employer does not exclude contributions made to your 403(b) account from your earned income, you may be able to take a deduction for those contributions on your tax return. Irs 1040ez instructions    However, if your employer has agreed to exclude the contributions from your earned income, you will not be allowed a deduction on your tax return. Irs 1040ez instructions   If you can take a deduction, include your contributions on line 36 of the 2013 Form 1040. Irs 1040ez instructions Enter the amount of your deduction and write “403(b)” on the dotted line next to line 36. Irs 1040ez instructions How Much Can Be Contributed to My 403(b) Account? There are limits on the amount of contributions that can be made to your 403(b) account each year. Irs 1040ez instructions If contributions made to your 403(b) account are more than these contribution limits, penalties may apply. Irs 1040ez instructions Chapters 2 through 6 provide information on how to determine the amount that can be contributed to your 403(b) account. Irs 1040ez instructions Worksheets are provided in Chapter 9 to help you determine the maximum amount that can be contributed to your 403(b) account each year. Irs 1040ez instructions Chapter 7, Excess Contributions , describes how to prevent excess contributions and how to get an excess contribution corrected. Irs 1040ez instructions Prev  Up  Next   Home   More Online Publications
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The Irs 1040ez Instructions

Irs 1040ez instructions 8. Irs 1040ez instructions   Distributions and Rollovers Table of Contents DistributionsMinimum Required Distributions No Special 10-Year Tax Option Transfer of Interest in 403(b) ContractAfter-tax contributions. Irs 1040ez instructions Permissive service credit. Irs 1040ez instructions Tax-Free RolloversHardship exception to rollover rules. Irs 1040ez instructions Eligible retirement plans. Irs 1040ez instructions Nonqualifying distributions. Irs 1040ez instructions Second rollover. Irs 1040ez instructions Gift Tax Distributions Permissible distributions. Irs 1040ez instructions   Generally, a distribution cannot be made from a 403(b) account until the employee: Reaches age 59½, Has a severance from employment, Dies, Becomes disabled, In the case of elective deferrals, encounters financial hardship, or Has a qualified reservist distribution. Irs 1040ez instructions In most cases, the payments you receive or that are made available to you under your 403(b) account are taxable in full as ordinary income. Irs 1040ez instructions In general, the same tax rules apply to distributions from 403(b) plans that apply to distributions from other retirement plans. Irs 1040ez instructions These rules are explained in Publication 575. Irs 1040ez instructions Publication 575 also discusses the additional tax on early distributions from retirement plans. Irs 1040ez instructions Retired public safety officers. Irs 1040ez instructions   If you are an eligible retired public safety officer, distributions of up to $3,000, made directly from your 403(b) plan to pay accident, health, or long-term care insurance, are not included in your taxable income. Irs 1040ez instructions The premiums can be for you, your spouse, or your dependents. Irs 1040ez instructions   A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew. Irs 1040ez instructions   For additional information, see Publication 575. Irs 1040ez instructions Distribution for active reservist. Irs 1040ez instructions   The 10% penalty for early withdrawals will not apply to a qualified reservist distribution attributable to elective deferrals from a 403(b) plan. Irs 1040ez instructions A qualified reservist distribution is a distribution that is made: To an individual who is a reservist or national guardsman and who was ordered or called to active duty for a period in excess of 179 days or for an indefinite period; and During the period beginning on the date of the order or call to duty and ending at the close of the active duty period. Irs 1040ez instructions Minimum Required Distributions You must receive all, or at least a certain minimum, of your interest accruing after 1986 in the 403(b) plan by April 1 of the calendar year following the later of the calendar year in which you become age 70½, or the calendar year in which you retire. Irs 1040ez instructions Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. Irs 1040ez instructions If not, a minimum amount of these accruals must begin to be distributed by the later of the end of the calendar year in which you reach age 75 or April 1 of the calendar year following retirement. Irs 1040ez instructions For each year thereafter, the minimum distribution must be made by the last day of the year. Irs 1040ez instructions If you do not receive the required minimum distribution, you are subject to a nondeductible 50% excise tax on the difference between the required minimum distribution and the amount actually distributed. Irs 1040ez instructions No Special 10-Year Tax Option A distribution from a 403(b) plan does not qualify as a lump-sum distribution. Irs 1040ez instructions This means you cannot use the special 10-year tax option to calculate the taxable portion of a 403(b) distribution. Irs 1040ez instructions For more information, see Publication 575. Irs 1040ez instructions Transfer of Interest in 403(b) Contract Contract exchanges. Irs 1040ez instructions   If you transfer all or part of your interest from a 403(b) contract to another 403(b) contract (held in the same plan), the transfer is tax free, and is referred to as a contract exchange. Irs 1040ez instructions This was previously known as a 90-24 transfer. Irs 1040ez instructions A contract exchange is similar to a 90-24 transfer with one major difference. Irs 1040ez instructions Previously, you were able to accomplish the transfer without your employer’s involvement. Irs 1040ez instructions After September 24, 2007, all such transfers are accomplished through a contract exchange requiring your employer’s involvement. Irs 1040ez instructions In addition, the plan must provide for the exchange and the transferred interest must be subject to the same or stricter distribution restrictions. Irs 1040ez instructions Finally, your accumulated benefit after the exchange must be equal to what it was before the exchange. Irs 1040ez instructions   Transfers that do not satisfy this rule are plan distributions and are generally taxable as ordinary income. Irs 1040ez instructions Plan-to-plan transfers. Irs 1040ez instructions   You may also transfer part or all of your interest from a 403(b) plan to another 403(b) plan if you are an employee of (or were formerly employed by) the employer of the plan to which you would like to transfer. Irs 1040ez instructions Both the initial plan and the receiving plan must provide for transfers. Irs 1040ez instructions Your accumulated benefit after the transfer must be at least equal to what it was before the transfer. Irs 1040ez instructions The new plan’s restrictions on distributions must be the same or stricter than those of the original plan. Irs 1040ez instructions Tax-free transfers for certain cash distributions. Irs 1040ez instructions   A tax-free transfer may also apply to a cash distribution of your 403(b) account from an insurance company that is subject to a rehabilitation, conservatorship, insolvency, or similar state proceeding. Irs 1040ez instructions To receive tax-free treatment, you must do all of the following: Withdraw all the cash to which you are entitled in full settlement of your contract rights or, if less, the maximum permitted by the state. Irs 1040ez instructions Reinvest the cash distribution in a single policy or contract issued by another insurance company or in a single custodial account subject to the same or stricter distribution restrictions as the original contract not later than 60 days after you receive the cash distribution. Irs 1040ez instructions Assign all future distribution rights to the new contract or account for investment in that contract or account if you received an amount that is less than what you are entitled to because of state restrictions. Irs 1040ez instructions   In addition to the preceding requirements, you must provide the new insurer with a written statement containing all of the following information: The gross amount of cash distributed under the old contract. Irs 1040ez instructions The amount of cash reinvested in the new contract. Irs 1040ez instructions Your investment in the old contract on the date you receive your first cash distribution. Irs 1040ez instructions   Also, you must attach the following items to your timely filed income tax return in the year you receive the first distribution of cash. Irs 1040ez instructions A copy of the statement you gave the new insurer. Irs 1040ez instructions A statement that includes: The words ELECTION UNDER REV. Irs 1040ez instructions PROC. Irs 1040ez instructions 92-44, The name of the company that issued the new contract, and The new policy number. Irs 1040ez instructions Direct trustee-to-trustee transfer. Irs 1040ez instructions   If you make a direct trustee-to-trustee transfer, from your governmental 403(b) account to a defined benefit governmental plan, it may not be includible in gross income. Irs 1040ez instructions   The transfer amount is not includible in gross income if it is made to: Purchase permissive service credits, or Repay contributions and earnings that were previously refunded under a forfeiture of service credit under the plan, or under another plan maintained by a state or local government employer within the same state. Irs 1040ez instructions After-tax contributions. Irs 1040ez instructions   For distributions beginning after December 31, 2006, after-tax contributions can be rolled over between a 403(b) plan and a defined benefit plan, IRA, or a defined contribution plan. Irs 1040ez instructions If the rollover is to or from a 403(b) plan, it must occur through a direct trustee-to-trustee transfer. Irs 1040ez instructions Permissive service credit. Irs 1040ez instructions   A permissive service credit is credit for a period of service recognized by a defined benefit governmental plan only if you voluntarily contribute to the plan an amount that does not exceed the amount necessary to fund the benefit attributable to the period of service and the amount contributed is in addition to the regular employee contribution, if any, under the plan. Irs 1040ez instructions   A permissive service credit may also include service credit for up to 5 years where there is no performance of service, or service credited to provide an increased benefit for service credit which a participant is receiving under the plan. Irs 1040ez instructions   Check with your plan administrator as to the type and extent of service that may be purchased by this transfer. Irs 1040ez instructions Tax-Free Rollovers You can generally roll over tax free all or any part of a distribution from a 403(b) plan to a traditional IRA or a non-Roth eligible retirement plan, except for any nonqualifying distributions, described later. Irs 1040ez instructions You may also roll over any part of a distribution from a 403(b) plan by converting it through a direct rollover, described below, to a Roth IRA. Irs 1040ez instructions Conversion amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. Irs 1040ez instructions See Publication 590 for more information about conversion into a Roth IRA. Irs 1040ez instructions Note. Irs 1040ez instructions A participant is required to roll over distribution amounts received within 60 days in order for the amount to be treated as nontaxable. Irs 1040ez instructions Distribution amounts that are rolled over within the 60 days are not subject to the 10% early distribution penalty. Irs 1040ez instructions Rollovers to and from 403(b) plans. Irs 1040ez instructions   You can generally roll over tax free all or any part of a distribution from an eligible retirement plan to a 403(b) plan. Irs 1040ez instructions Beginning January 1, 2008, distributions from tax-qualified retirement plans and tax-sheltered annuities can be converted by making a direct rollover into a Roth IRA subject to the restrictions that currently apply to rollovers from a traditional IRA into a Roth IRA. Irs 1040ez instructions Converted amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. Irs 1040ez instructions See Publication 590 for more information on conversion into a Roth IRA. Irs 1040ez instructions   If a distribution includes both pre-tax contributions and after-tax contributions, the portion of the distribution that is rolled over is treated as consisting first of pre-tax amounts (contributions and earnings that would be includible in income if no rollover occurred). Irs 1040ez instructions This means that if you roll over an amount that is at least as much as the pre-tax portion of the distribution, you do not have to include any of the distribution in income. Irs 1040ez instructions   For more information on rollovers and eligible retirement plans, see Publication 575. Irs 1040ez instructions If you roll over money or other property from a 403(b) plan to an eligible retirement plan, see Publication 575 for information about possible effects on later distributions from the eligible retirement plan. Irs 1040ez instructions Hardship exception to rollover rules. Irs 1040ez instructions   The IRS may waive the 60-day rollover period if the failure to waive such requirement would be against equity or good conscience, including cases of casualty, disaster, or other events beyond the reasonable control of an individual. Irs 1040ez instructions   To obtain a hardship exception, you must apply to the IRS for a waiver of the 60-day rollover requirement. Irs 1040ez instructions You apply for the waiver by following the general instructions used in requesting a letter ruling. Irs 1040ez instructions These instructions are stated in Revenue Procedure 2013-4, 2013-1 I. Irs 1040ez instructions R. Irs 1040ez instructions B. Irs 1040ez instructions 126 available at www. Irs 1040ez instructions irs. Irs 1040ez instructions gov/irb/2013-01_IRB/ar09. Irs 1040ez instructions html, or see the latest annual update. Irs 1040ez instructions You must also pay a user fee with the application. Irs 1040ez instructions The user fee for a rollover that is less than $50,000 is $500. Irs 1040ez instructions For rollovers that are $50,000 or more, see Revenue Procedure 2013-8, 2013-1 I. Irs 1040ez instructions R. Irs 1040ez instructions B. Irs 1040ez instructions 237 available at www. Irs 1040ez instructions irs. Irs 1040ez instructions gov/irb/2013-01_IRB/ar13. Irs 1040ez instructions html, or see the latest annual update. Irs 1040ez instructions   In determining whether to grant a waiver, the IRS will consider all relevant facts and circumstances, including: Whether errors were made by the financial institution; Whether you were unable to complete the rollover due to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, or postal error; Whether you used the amount distributed (for example, in the case of payment by check, whether you cashed the check); and How much time has passed since the date of distribution. Irs 1040ez instructions   For additional information on rollovers, see Publication 590. Irs 1040ez instructions Eligible retirement plans. Irs 1040ez instructions   The following are considered eligible retirement plans. Irs 1040ez instructions Individual retirement arrangements. Irs 1040ez instructions Roth IRA. Irs 1040ez instructions 403(b) plans. Irs 1040ez instructions Government eligible 457 plans. Irs 1040ez instructions Qualified retirement plans. Irs 1040ez instructions  If the distribution is from a designated Roth account, then the only eligible retirement plan is another designated Roth account or a Roth IRA. Irs 1040ez instructions Nonqualifying distributions. Irs 1040ez instructions   You cannot roll over tax free: Minimum required distributions (generally required to begin at age 70½), Substantially equal payments over your life or life expectancy, Substantially equal payments over the joint lives or life expectancies of your beneficiary and you, Substantially equal payments for a period of 10 years or more, Hardship distributions, or Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or excess annual additions and any allocable gains. Irs 1040ez instructions Rollover of nontaxable amounts. Irs 1040ez instructions    You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another eligible retirement plan, traditional IRA, or Roth IRA. Irs 1040ez instructions The transfer must be made either through a direct rollover to an eligible plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional IRA or Roth IRA. Irs 1040ez instructions   If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution. Irs 1040ez instructions Direct rollovers of 403(b) plan distributions. Irs 1040ez instructions   You have the option of having your 403(b) plan make the rollover directly to a traditional IRA, Roth IRA, or new plan. Irs 1040ez instructions Before you receive a distribution, your plan will give you information on this. Irs 1040ez instructions It is generally to your advantage to choose this option because your plan will not withhold tax on the distribution if you choose it. Irs 1040ez instructions Distribution received by you. Irs 1040ez instructions   If you receive a distribution that qualifies to be rolled over, you can roll over all or any part of the distribution. Irs 1040ez instructions Generally, you will receive only 80% of the distribution because 20% must be withheld. Irs 1040ez instructions If you roll over only the 80% you receive, you must pay tax on the 20% you did not roll over. Irs 1040ez instructions You can replace the 20% that was withheld with other money within the 60-day period to make a 100% rollover. Irs 1040ez instructions Voluntary deductible contributions. Irs 1040ez instructions   For tax years 1982 through 1986, employees could make deductible contributions to a 403(b) plan under the individual retirement arrangement (IRA) rules instead of deducting contributions to a traditional IRA. Irs 1040ez instructions   If you made voluntary deductible contributions to a 403(b) plan under these traditional IRA rules, the distribution of all or part of the accumulated deductible contributions may be rolled over if it otherwise qualifies as a distribution you can roll over. Irs 1040ez instructions Accumulated deductible contributions are the deductible contributions: Plus Income allocable to the contributions, Gain allocable to the contributions, and Minus Expenses and losses allocable to the contributions, and Distributions from the contributions, income, or gain. Irs 1040ez instructions Excess employer contributions. Irs 1040ez instructions   The portion of a distribution from a 403(b) plan transferred to a traditional IRA that was previously included in income as excess employer contributions (discussed earlier) is not an eligible rollover distribution. Irs 1040ez instructions   Its transfer does not affect the rollover treatment of the eligible portion of the transferred amounts. Irs 1040ez instructions However, the ineligible portion is subject to the traditional IRA contribution limits and may create an excess IRA contribution subject to a 6% excise tax (see chapter 1 of Publication 590). Irs 1040ez instructions Qualified domestic relations order. Irs 1040ez instructions   You may be able to roll over tax free all or any part of an eligible rollover distribution from a 403(b) plan that you receive under a qualified domestic relations order (QDRO). Irs 1040ez instructions If you receive the interest in the 403(b) plan as an employee's spouse or former spouse under a QDRO, all of the rollover rules apply to you as if you were the employee. Irs 1040ez instructions You can roll over your interest in the plan to a traditional IRA or another 403(b) plan. Irs 1040ez instructions For more information on the treatment of an interest received under a QDRO, see Publication 575. Irs 1040ez instructions Spouses of deceased employees. Irs 1040ez instructions   If you are the spouse of a deceased employee, you can roll over the qualifying distribution attributable to the employee. Irs 1040ez instructions You can make the rollover to any eligible retirement plan. Irs 1040ez instructions   After you roll money and other property over from a 403(b) plan to an eligible retirement plan, and you take a distribution from that plan, you will not be eligible to receive the capital gain treatment or the special averaging treatment for the distribution. Irs 1040ez instructions Second rollover. Irs 1040ez instructions   If you roll over a qualifying distribution to a traditional IRA, you can, if certain conditions are satisfied, later roll the distribution into another 403(b) plan. Irs 1040ez instructions For more information, see IRA as a holding account (conduit IRA) for rollovers to other eligible plans in chapter 1 of Publication 590. Irs 1040ez instructions Nonspouse beneficiary. Irs 1040ez instructions   A nonspouse beneficiary may make a direct rollover of a distribution from a 403(b) plan of a deceased participant if the rollover is a direct transfer to an inherited IRA established to receive the distribution. Irs 1040ez instructions If the rollover is a direct trustee-to-trustee transfer to an IRA established to receive the distribution: The transfer will be treated as an eligible rollover distribution. Irs 1040ez instructions The IRA will be considered an inherited account. Irs 1040ez instructions The required minimum distribution rules that apply in instances where the participant dies before the entire interest is distributed will apply to the transferred IRA. Irs 1040ez instructions    For more information on IRAs, see Publication 590. Irs 1040ez instructions Frozen deposits. Irs 1040ez instructions   The 60-day period usually allowed for completing a rollover is extended for any time that the amount distributed is a frozen deposit in a financial institution. Irs 1040ez instructions The 60-day period cannot end earlier than 10 days after the deposit ceases to be a frozen deposit. Irs 1040ez instructions   A frozen deposit is any deposit that on any day during the 60-day period cannot be withdrawn because: The financial institution is bankrupt or insolvent, or The state where the institution is located has placed limits on withdrawals because one or more banks in the state are (or are about to be) bankrupt or insolvent. Irs 1040ez instructions Gift Tax If, by choosing or not choosing an election, or option, you provide an annuity for your beneficiary at or after your death, you may have made a taxable gift equal to the value of the annuity. Irs 1040ez instructions Joint and survivor annuity. Irs 1040ez instructions   If the gift is an interest in a joint and survivor annuity where only you and your spouse have the right to receive payments, the gift will generally be treated as qualifying for the unlimited marital deduction. Irs 1040ez instructions More information. Irs 1040ez instructions   For information on the gift tax, see Publication 559, Survivors, Executors, and Administrators. Irs 1040ez instructions Prev  Up  Next   Home   More Online Publications