Originally Posted by
Check Essential
Chuck-
Its kinda complex, but here's the short version--
The Delta, Northwest, United and USAir pilots all received certain distributions of cash following bankruptcy. In some cases the distribution was substantial.
That money was all taxed as ordinary income.
The gov't. did make a 1 time exemption to the income limits for contributions to Roth IRAs but it still was counted as ordinary income.
This new law will allow the funds to be rolled over to regular IRA accounts which means there would be no income tax due. That means those of us who received those distributions will be getting a BIG tax refund.
Check, thanks for the synopsis, but doesn't that mean that only those individuals that now have that money (or any money) in a non-qualified retirement account can roll it over to an ira? If I had invested the money in a business, let's say, then there might not be any money available to roll into an IRA.
This is a very good thing for all that experienced bk!