Roll profit sharing plan into IRA?

[Greenbriar]

Client is a retired attorney and has a profit sharing plan that he made tax deductible contributions to over the past 20 years or so. Requires a 5500 filing every year. Is it possible to roll it over the an IRA and avoid the 5500 filings? He's 65 years old. Thanks.

[Roland Slugg]

Yes, that is allowed. (Code §402(c)(1)) The rollover must take place within 60 days after the funds are received from the other Plan. A direct "trustee-to-trustee" transfer is best; otherwise 20% FWHT is required.