Agenda - 12-07-2009 - 4g - Laserfiche WebLink

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34 If the Employee's modified AGI for a taxable year is in the phase-out range, the maximtun regular contribution determined tinder this table for that taxable year is rounded up ro the next multiple of $10 and not reduced below $200. {ii) If the Emplo}gee makes regular contributions to both Roth and notiRoth IRAs for a rexable peat; the maximum regular contribution that can be made to all the Employee's Roth IRAs for that taxable gear is reduced b}~ the regular contributions made to the Employee's nonRoth IRAs for the taxable pear. (4} Qualified Rollover CotttriGutiou Lftnit. A rollover from a nonRoth IRA cannot be made to this iRA if, for the year the amount is distributed from the nonRoth 1KA,(i) the Employee is married and files a separate return, {ii) the Employee is not married and has modified AGI in excess of $100,000 or (iii) the Employee is married and together the Etnplo}ree and the Employee's spouse have modified AGI in excess of $100,000. For purposes of the preceding sentence, a husband and wife are not treated as married for a taxable year if they have. lived apart at all times during that taxable year and file separate returns for the taxable year. {5) SI1t'IPLE IRA Limits. No contributions will be accepted under a SIMPLE IRA plan established by any employer pursuant to Section 408{p) of the Code. Also, no transfer or rollover of funds attributable to contributions made by a particular employer under its SIMPLE IKA plan will be accepted from a SIMPLE IRA, that is, an IRA used in conjunction tivith a SIMPLE IRA plan, prior to the expiration of the 2-year period beginning on the date the Employee first participated in that employer's SIMPLE IRA plan. (6) Recl~atneterizrttiotr. A regular contribution to a uonRoth IRA tna}' be recharacterized pursuant to the rules in Section 1.408A-5 of the Income Tax Regulations as a regular contribution tv this IRA, subject to the limits iii (3) above. (7) A~odrfted AGI. For purposes of E3) and {4) above, an Employee's modified AGI far a taxable year is defined in Section 408A(c)(3)(C)(i) of the Code and does not include any amount included in adjusted gross income as a result of a rollover from a nonRoth IRA (a "conversion"). (8) Cottrpetrs~tiotr. For purposes of (1) above, compensation is defined as wages, salaries, professional fees, or other amounts derived from or received for personal sernices actually rendered (indttding, but nor limited to, commissions paid salesmen, compensation far services on the basis of a percentage of profits, conutussions ou insurance premiums, tips and bonuses). and includes earned income, as defined in Section 401(c)(2) of the Code (reduced by the deduction the self-employed individual takes for contributions made ro aself-employed retirement plan). For purposes of this dcfitzitioti, Section 401(c}(2) of the Cvde shall be applied as if the term trade or business for purposes of Section 1402 of the Code included service described itt subsection (c)(6). Compensation does not include amounts derived From or received as earnings or profits from property (including but not limited to interest and dividends} or amounts not includible in gross income. Compensation also does not include an}~ amount received as a pension or annuiq~ or as deferred compensation. The term "compensation" shall include any amount includible in the Employee's grass income under Section 7I of the Code with respect to a divorce or separation instrument described in subparagraph (A) of Section 71(6)(2) of the Code In the case of a married Employee filing a joint return, the greater compensation of his or her spouse is treated as his or her own compensation but onl}~ to the extent that such spouse's compensation is not being used for purposes of the spouse making a contribution to a Rvth IRA or a deductible contribution to a nonRoth iRA. (c) Coleectibles. If the Deemed IRA Trust acquires collectibles within the meaning of Section 408(m) of the Code after December 31, 1981, Deemed IRA Trust assets will be treated as a distribution in an amount equal to the cost of such collectibles. i9