Keough to IRA rollover

[farmerEd]

Hi guys.

I am thinking now that I've been retired a bit, my self-employed Keough (money purchase/profit sharing) plan should be rolled over to an IRA.

My plan is to keep it at the same financial institution.

My question is, are there any IRS forms that need to be filled out or filed? Or just the rollover forms themselves?

[Martha]

I believe that you report the rollover on form 1040, line 15 or 16, depending on the nature of the plan you are rolling over into the IRA. See this IRS publication: http://www.irs.gov/publications/p590/index.html

and the instructions for form 1040, http://www.irs.gov/pub/irs-pdf/i1040.pdf

[haha]

Originally Posted by OldMcDonald

Hi guys.

I am thinking now that I've been retired a bit, my self-employed Keough (money purchase/profit sharing) plan should be rolled over to an IRA.

My plan is to keep it at the same financial institution.

My question is, are there any IRS forms that need to be filled out or filed? Or just the rollover forms themselves?

Could you explain the advantages of rolling it over? Can't it just contiinue on, without any news funds added? I hope so, 'cause that is what I have been doing.

Ha


Ha

[perinova]

I can see one advantage in rolling over is that you won't have to file form 550 any more. Do you still have to file if you are not adding money in?

Other than simplifying your finances by cmobining retirement plans.

[haha]

Originally Posted by perinova

Do you still have to file if you are not adding money in?

Yes, you do. I have been told that Keo, like 401K, is more out of harms way than an IRA judgment-wise.

Ha

[Martha]

Originally Posted by HaHa

Yes, you do. I have been told that Keo, like 401K, is more out of harms way than an IRA judgment-wise.

Ha

I believe that a Keogh which has participants which includes employees other than a husband/wife business owner is an ERISA qualified plan, thus exempt from creditors in any amount, no matter what state you live in.

A Keogh which only includes the business owner may not be considered an ERISA qualified plan.

Under federal bankruptcy law, non ERISA plans like an IRA are exempt up to a million dollars. If you don't file bankruptcy, then your state law will goven the extent your non-ERISA plan is exempt.