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psamead

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  1. Okay. I posted this on the 457(b) forum and got fantastic feedback to my question (this site is very helpful). Unfortunately, I now find out that the annuity plan I am the beneficiary of is not a 457(b) but is a 403(b). Here is a summary: In January of 2008 my retired father passed away at the age of 79. He was pre-deceased by his spouse. At the time of my father’s death he was receiving monthly payments from two TIAA-CREF 403(b) annuity contracts. Both of these contracts were joint life, full benefit to survivor with a twenty (20) year guarantee period. At the time of my father’s death there were still 42 months remaining of the guarantee period with me as the beneficiary. TIAA-CREF has offered me two options: 1) take a lump sum commuted value or, 2) continue with the monthly payments until the end of the guarantee period. Both of these options have pretty hefty tax liabilities. I would like to reduce my taxes and hence increase the total amount of the payment. In my review of the available IRS materials (Publications 590 and 571, IRC 401, 402, 403 and the Pension Protection Act of 2006) it appears that I could transfer the lump sum payment into an inherited IRA. I also looked at receiving the monthly payments and having them transferred into the inherited IRA but my impression is that the rules don’t allow this. I am being told by TIAA-CREF that since my father had already begun distributions (annuitized the contract) that none of the payments (monthly or lump sum) are eligible for a non-spousal transfer into an inherited IRA. It seems to me that this is in conflict with the Pension Protection Act and IRC 402(c )(11). Does anyone have a clear answer to this? Thanks!
  2. If I look at the entire section of IRC 457 I get: (e) Other definitions and special rules. For purposes of this section-- (1) Eligible employer. The term "eligible employer" means-- (A) a State, political subdivision of a State, and any agency or instrumentality of a State or political subdivision of a State, and (B) any other organization (other than a governmental unit) exempt from tax under this subtitle. It appears to me that part (B) includes other tax exempt orginizations such as hospitals. Am I wrong in this? I know that the tax code is a foreign language but it is still based on english. EDIT: Okay. I looked a little further and saw that rollovers cited in section (e)(16)(A) are for those entities described only in section (e)(1)(A) You were right about the maze.
  3. Yes, you are correct that it is a non=profit company (a teaching hospital). Does this mean that because it is a private plan that it is not an "eligible retirement plan"? I have read through Section 829 of the Pension Protection Act of 2006 and it would seem to allow this type of transfer. Thanks for your help on this.
  4. I am the beneficiary of a private 457(b) annuity. This was a joint life with a 20 year guarantee period funded by pre-tax contributions. There are still 42 months of payments remaining. I am being given the option to take a lump sum commuted value or continue with the monthly payments. I would like to continue the monthly payments (they are fixed and have gone up every year for the past 16 years) but only if I can have the payments directly transfered to an inherited IRA which would allow me to trickle to money out and lower my taxes. Does anyone know if the IRS allows this?? Thanks
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