Worker, Retiree and Employer Recovery Act of 2008

WORKER, RETIREE AND EMPLOYER RECOVERY ACT OF 2008 - HR 7327

In December 2008, President Bush signed into law the Worker, Retiree and Employer Recovery Act of 2008 (HR 7327). The act allows Delta Airlines pilots the ability to contribute the taxable distributions received from the Delta bankruptcy claim to a Roth IRA.
 

QUESTIONS & ANSWERS


1.)  How do I qualify for a contribution to a Roth IRA? 
If you received a taxable distribution from Delta Airlines, you are qualified for the Roth IRA rollover. HR 7327 supersedes the usual Roth IRA limitations for normal contributions or income levels.

2.)  Do I have to contribute all of my distribution to the Roth IRA?
No, you have the ability to contribute either a portion of the distribution or all of the distribution.
 
3.) How do I know how much I can contribute?
You should have received a statement from Delta Airlines -- Form 8935 -- showing the amount of the distributions you received that can be treated as qualifying payments permitted to be rolled over to a Roth IRA.
 
4.) Do I have to use the same distribution money I received in order to fund the rollover?
No, the money can come from any available cash source you have. There may be tax implications if you choose to sell an existing security and transfer those proceeds into the Roth IRA. Consult your tax advisor or call a Cleary Gull Retirement Consultant at 877-747-1133 to find out more about what assets are best to use to fund your contribution.
 
5.) Is there a deadline for my Roth IRA contribution?
Yes. The deadline for all contributions to a Roth IRA is June 22, 2009.
 
6.) Why should I contribute to a Roth IRA versus leaving my distribution where it is?
Call your Cleary Gull Retirement Consultant at 877-747-1133 to find out the advantages of a Roth IRA and if it is right for you.

 

© 2011 Cleary Gull Inc. All Rights Reserved. Member FINRA and SIPC