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Cheap tax software 10. Cheap tax software   Education Savings Bond Program Table of Contents Introduction Who Can Cash In Bonds Tax FreeAdjusted qualified education expenses. Cheap tax software Eligible educational institution. Cheap tax software Dependent for whom you claim an exemption. Cheap tax software MAGI when using Form 1040A. Cheap tax software MAGI when using Form 1040. Cheap tax software Figuring the Tax-Free AmountEffect of the Amount of Your Income on the Amount of Your Exclusion Claiming the Exclusion Introduction Generally, you must pay tax on the interest earned on U. Cheap tax software S. Cheap tax software savings bonds. Cheap tax software If you do not include the interest in income in the years it is earned, you must include it in your income in the year in which you cash in the bonds. Cheap tax software However, when you cash in certain savings bonds under an education savings bond program, you may be able to exclude the interest from income. Cheap tax software Who Can Cash In Bonds Tax Free You may be able to cash in qualified U. Cheap tax software S. Cheap tax software savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions. Cheap tax software You pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return. Cheap tax software Your modified adjusted gross income (MAGI) is less than the amount specified for your filing status. Cheap tax software Your filing status is not married filing separately. Cheap tax software Qualified U. Cheap tax software S. Cheap tax software savings bonds. Cheap tax software   A qualified U. Cheap tax software S. Cheap tax software savings bond is a series EE bond issued after 1989 or a series I bond. Cheap tax software The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners). Cheap tax software   The owner must be at least 24 years old before the bond's issue date. Cheap tax software The issue date is printed on the front of the savings bond. Cheap tax software    The issue date is not necessarily the date of purchase—it will be the first day of the month in which the bond is purchased (or posted, if bought electronically). Cheap tax software Qualified education expenses. Cheap tax software   These include the following items you pay for either yourself, your spouse, or a dependent for whom you claim an exemption. Cheap tax software Tuition and fees required to enroll at or attend an eligible educational institution. Cheap tax software Qualified education expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Cheap tax software Contributions to a qualified tuition program (QTP) (see How Much Can You Contribute in chapter 8, Qualified Tuition Program). Cheap tax software Contributions to a Coverdell education savings account (ESA) (see Contributions in chapter 7, Coverdell Education Savings Account). Cheap tax software Adjusted qualified education expenses. Cheap tax software   You must reduce your qualified education expenses by all of the following tax-free benefits. Cheap tax software Tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Cheap tax software Expenses used to figure the tax-free portion of distributions from a Coverdell ESA (see Qualified Education Expenses in chapter 7, Coverdell Education Savings Account). Cheap tax software Expenses used to figure the tax-free portion of distributions from a QTP (see Qualified education expenses in chapter 8, Qualified Tuition Program). Cheap tax software Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Qualified tuition reductions (see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), or Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ). Cheap tax software Any expenses used in figuring the American opportunity and lifetime learning credits. Cheap tax software See What Expenses Qualify in chapter 2, American Opportunity Credit, and What Expenses Qualify in chapter 3, Lifetime Learning Credit, for more information. Cheap tax software Eligible educational institution. Cheap tax software   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Cheap tax software S. Cheap tax software Department of Education. Cheap tax software It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Cheap tax software The educational institution should be able to tell you if it is an eligible educational institution. Cheap tax software   Certain educational institutions located outside the United States also participate in the U. Cheap tax software S. Cheap tax software Department of Education's Federal Student Aid (FSA) programs. Cheap tax software Dependent for whom you claim an exemption. Cheap tax software   You claim an exemption for a person if you list his or her name and other required information on Form 1040 (or Form 1040A), line 6c. Cheap tax software Modified adjusted gross income (MAGI). Cheap tax software   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return without taking into account this interest exclusion. Cheap tax software However, as discussed below, there may be other modifications. Cheap tax software MAGI when using Form 1040A. Cheap tax software   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). Cheap tax software MAGI when using Form 1040. Cheap tax software   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Cheap tax software    Use the worksheet in the instructions for line 9 of Form 8815 to figure your MAGI. Cheap tax software If you claim any of the exclusion or deduction items (1)–(6) listed above, add the amount of the exclusion or deduction to the amount on line 5 of the worksheet. Cheap tax software Do not add in the deduction for (7) student loan interest, and (8) tuition and fees, or (9) domestic production activities because line 4 of the worksheet already includes these amounts. Cheap tax software Enter the total on Form 8815, line 9, as your modified adjusted gross income (MAGI). Cheap tax software    Because the deduction for interest expenses attributable to royalties and other investments is limited to your net investment income, you cannot figure the deduction until you have figured this interest exclusion. Cheap tax software Therefore, if you had interest expenses attributable to royalties and deductible on Schedule E (Form 1040), Supplemental Income and Loss, you must make a special computation of your deductible interest without regard to this exclusion to figure the net royalty income included in your MAGI. Cheap tax software See Royalties included in MAGI under Education Savings Bond Program in Publication 550, chapter 1. Cheap tax software Figuring the Tax-Free Amount If the total you receive when you cash in the bonds is not more than the adjusted qualified education expenses for the year, all of the interest on the bonds may be tax free. Cheap tax software However, if the total you receive when you cash in the bonds is more than the adjusted expenses, only part of the interest may be tax free. Cheap tax software To determine the tax-free amount, multiply the interest part of the proceeds by a fraction. Cheap tax software The numerator (top part) of the fraction is the adjusted qualified education expenses (AQEE) you paid during the year. Cheap tax software The denominator (bottom part) of the fraction is the total proceeds you received during the year. Cheap tax software Example. Cheap tax software In February 2013, Mark and Joan Washington, a married couple, cashed a qualified series EE U. Cheap tax software S. Cheap tax software savings bond. Cheap tax software They received proceeds of $9,000, representing principal of $6,000 and interest of $3,000. Cheap tax software In 2013, they paid $7,650 of their daughter's college tuition. Cheap tax software They are not claiming an American opportunity or lifetime learning credit for those expenses, and their daughter does not have any tax-free educational assistance. Cheap tax software Their MAGI for 2013 was $80,000. Cheap tax software   $3,000 interest × $7,650 AQEE  $9,000 proceeds = $2,550 tax-free interest   They can exclude $2,550 of interest in 2013. Cheap tax software They must pay tax on the remaining $450 ($3,000 − $2,550) interest. Cheap tax software Effect of the Amount of Your Income on the Amount of Your Exclusion The amount of your interest exclusion is gradually reduced (phased out) based on your MAGI and filing status. Cheap tax software Claiming the Exclusion Use Form 8815 to figure your education savings bond interest exclusion. Cheap tax software Enter your exclusion on line 3 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends. Cheap tax software Attach Form 8815 to your tax return. Cheap tax software Prev  Up  Next   Home   More Online Publications
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Cheap tax software 8. Cheap tax software   Distributions and Rollovers Table of Contents DistributionsMinimum Required Distributions No Special 10-Year Tax Option Transfer of Interest in 403(b) ContractAfter-tax contributions. Cheap tax software Permissive service credit. Cheap tax software Tax-Free RolloversHardship exception to rollover rules. Cheap tax software Eligible retirement plans. Cheap tax software Nonqualifying distributions. Cheap tax software Second rollover. Cheap tax software Gift Tax Distributions Permissible distributions. Cheap tax software   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. Cheap tax software 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. Cheap tax software In general, the same tax rules apply to distributions from 403(b) plans that apply to distributions from other retirement plans. Cheap tax software These rules are explained in Publication 575. Cheap tax software Publication 575 also discusses the additional tax on early distributions from retirement plans. Cheap tax software Retired public safety officers. Cheap tax software   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. Cheap tax software The premiums can be for you, your spouse, or your dependents. Cheap tax software   A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew. Cheap tax software   For additional information, see Publication 575. Cheap tax software Distribution for active reservist. Cheap tax software   The 10% penalty for early withdrawals will not apply to a qualified reservist distribution attributable to elective deferrals from a 403(b) plan. Cheap tax software 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. Cheap tax software 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. Cheap tax software Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. Cheap tax software 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. Cheap tax software For each year thereafter, the minimum distribution must be made by the last day of the year. Cheap tax software 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. Cheap tax software No Special 10-Year Tax Option A distribution from a 403(b) plan does not qualify as a lump-sum distribution. Cheap tax software This means you cannot use the special 10-year tax option to calculate the taxable portion of a 403(b) distribution. Cheap tax software For more information, see Publication 575. Cheap tax software Transfer of Interest in 403(b) Contract Contract exchanges. Cheap tax software   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. Cheap tax software This was previously known as a 90-24 transfer. Cheap tax software A contract exchange is similar to a 90-24 transfer with one major difference. Cheap tax software Previously, you were able to accomplish the transfer without your employer’s involvement. Cheap tax software After September 24, 2007, all such transfers are accomplished through a contract exchange requiring your employer’s involvement. Cheap tax software In addition, the plan must provide for the exchange and the transferred interest must be subject to the same or stricter distribution restrictions. Cheap tax software Finally, your accumulated benefit after the exchange must be equal to what it was before the exchange. Cheap tax software   Transfers that do not satisfy this rule are plan distributions and are generally taxable as ordinary income. Cheap tax software Plan-to-plan transfers. Cheap tax software   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. Cheap tax software Both the initial plan and the receiving plan must provide for transfers. Cheap tax software Your accumulated benefit after the transfer must be at least equal to what it was before the transfer. Cheap tax software The new plan’s restrictions on distributions must be the same or stricter than those of the original plan. Cheap tax software Tax-free transfers for certain cash distributions. Cheap tax software   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. Cheap tax software 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. Cheap tax software 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. Cheap tax software 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. Cheap tax software   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. Cheap tax software The amount of cash reinvested in the new contract. Cheap tax software Your investment in the old contract on the date you receive your first cash distribution. Cheap tax software   Also, you must attach the following items to your timely filed income tax return in the year you receive the first distribution of cash. Cheap tax software A copy of the statement you gave the new insurer. Cheap tax software A statement that includes: The words ELECTION UNDER REV. Cheap tax software PROC. Cheap tax software 92-44, The name of the company that issued the new contract, and The new policy number. Cheap tax software Direct trustee-to-trustee transfer. Cheap tax software   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. Cheap tax software   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. Cheap tax software After-tax contributions. Cheap tax software   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. Cheap tax software If the rollover is to or from a 403(b) plan, it must occur through a direct trustee-to-trustee transfer. Cheap tax software Permissive service credit. Cheap tax software   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. Cheap tax software   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. Cheap tax software   Check with your plan administrator as to the type and extent of service that may be purchased by this transfer. Cheap tax software 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. Cheap tax software 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. Cheap tax software Conversion amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. Cheap tax software See Publication 590 for more information about conversion into a Roth IRA. Cheap tax software Note. Cheap tax software A participant is required to roll over distribution amounts received within 60 days in order for the amount to be treated as nontaxable. Cheap tax software Distribution amounts that are rolled over within the 60 days are not subject to the 10% early distribution penalty. Cheap tax software Rollovers to and from 403(b) plans. Cheap tax software   You can generally roll over tax free all or any part of a distribution from an eligible retirement plan to a 403(b) plan. Cheap tax software 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. Cheap tax software Converted amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. Cheap tax software See Publication 590 for more information on conversion into a Roth IRA. Cheap tax software   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). Cheap tax software 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. Cheap tax software   For more information on rollovers and eligible retirement plans, see Publication 575. Cheap tax software 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. Cheap tax software Hardship exception to rollover rules. Cheap tax software   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. Cheap tax software   To obtain a hardship exception, you must apply to the IRS for a waiver of the 60-day rollover requirement. Cheap tax software You apply for the waiver by following the general instructions used in requesting a letter ruling. Cheap tax software These instructions are stated in Revenue Procedure 2013-4, 2013-1 I. Cheap tax software R. Cheap tax software B. Cheap tax software 126 available at www. Cheap tax software irs. Cheap tax software gov/irb/2013-01_IRB/ar09. Cheap tax software html, or see the latest annual update. Cheap tax software You must also pay a user fee with the application. Cheap tax software The user fee for a rollover that is less than $50,000 is $500. Cheap tax software For rollovers that are $50,000 or more, see Revenue Procedure 2013-8, 2013-1 I. Cheap tax software R. Cheap tax software B. Cheap tax software 237 available at www. Cheap tax software irs. Cheap tax software gov/irb/2013-01_IRB/ar13. Cheap tax software html, or see the latest annual update. Cheap tax software   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. Cheap tax software   For additional information on rollovers, see Publication 590. Cheap tax software Eligible retirement plans. Cheap tax software   The following are considered eligible retirement plans. Cheap tax software Individual retirement arrangements. Cheap tax software Roth IRA. Cheap tax software 403(b) plans. Cheap tax software Government eligible 457 plans. Cheap tax software Qualified retirement plans. Cheap tax software  If the distribution is from a designated Roth account, then the only eligible retirement plan is another designated Roth account or a Roth IRA. Cheap tax software Nonqualifying distributions. Cheap tax software   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. Cheap tax software Rollover of nontaxable amounts. Cheap tax software    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. Cheap tax software 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. Cheap tax software   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. Cheap tax software Direct rollovers of 403(b) plan distributions. Cheap tax software   You have the option of having your 403(b) plan make the rollover directly to a traditional IRA, Roth IRA, or new plan. Cheap tax software Before you receive a distribution, your plan will give you information on this. Cheap tax software It is generally to your advantage to choose this option because your plan will not withhold tax on the distribution if you choose it. Cheap tax software Distribution received by you. Cheap tax software   If you receive a distribution that qualifies to be rolled over, you can roll over all or any part of the distribution. Cheap tax software Generally, you will receive only 80% of the distribution because 20% must be withheld. Cheap tax software If you roll over only the 80% you receive, you must pay tax on the 20% you did not roll over. Cheap tax software You can replace the 20% that was withheld with other money within the 60-day period to make a 100% rollover. Cheap tax software Voluntary deductible contributions. Cheap tax software   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. Cheap tax software   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. Cheap tax software 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. Cheap tax software Excess employer contributions. Cheap tax software   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. Cheap tax software   Its transfer does not affect the rollover treatment of the eligible portion of the transferred amounts. Cheap tax software 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). Cheap tax software Qualified domestic relations order. Cheap tax software   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). Cheap tax software 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. Cheap tax software You can roll over your interest in the plan to a traditional IRA or another 403(b) plan. Cheap tax software For more information on the treatment of an interest received under a QDRO, see Publication 575. Cheap tax software Spouses of deceased employees. Cheap tax software   If you are the spouse of a deceased employee, you can roll over the qualifying distribution attributable to the employee. Cheap tax software You can make the rollover to any eligible retirement plan. Cheap tax software   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. Cheap tax software Second rollover. Cheap tax software   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. Cheap tax software For more information, see IRA as a holding account (conduit IRA) for rollovers to other eligible plans in chapter 1 of Publication 590. Cheap tax software Nonspouse beneficiary. Cheap tax software   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. Cheap tax software 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. Cheap tax software The IRA will be considered an inherited account. Cheap tax software 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. Cheap tax software    For more information on IRAs, see Publication 590. Cheap tax software Frozen deposits. Cheap tax software   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. Cheap tax software The 60-day period cannot end earlier than 10 days after the deposit ceases to be a frozen deposit. Cheap tax software   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. Cheap tax software 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. Cheap tax software Joint and survivor annuity. Cheap tax software   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. Cheap tax software More information. Cheap tax software   For information on the gift tax, see Publication 559, Survivors, Executors, and Administrators. Cheap tax software Prev  Up  Next   Home   More Online Publications