AboutAllen Expertise Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience Over 35years experience in the pension field
Organizations Various actuarial organizations
Education/Credentials MBA and various professional certifications
Expert: Allen Date: 6/14/2008 Subject: keogh rollover
Question I am 65 and have a Keogh from my business. I am an individual owner no employees.I have had this plan since 1975. Can I roll my keogh directly to an IRA without creating a taxable event?
Answer The answer to your question is yes. However, there are a few things to be aware of if you want to satisfy all the requirements of the law.
1. You should terminate the plan by putting a statement that the plan is terminated in your files. The statement should be dated and signed.
2. You should contact the financial institution that holds the assets of the plan and ask them for a distribution form where you elect a lump sum distyibution with the money rolled over to an IRA at either that institution or another institution.
3. The financial institution should prepare a 1099R form next January which has been completed to show the amount that was rolled over and coded to show that it was rolled over to an IRA rather than paid to you.
4. You should file a final 5500EZ form with the government for 2008. Ideally, this should be prepared by the financial institution. Alternatively, your accountant can prepare.
