How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Bill Your Own Question
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
Type Your Tax Question Here...
Bill is online now
A new question is answered every 9 seconds

I work for an airline that went bankrupt and reorganized.

Resolved Question:

I work for an airline that went bankrupt and reorganized. On Dec 23, 2008 the worker, retiree, and employer recovery act of 2008 was signed into law. Under section 125 of the act it allows certain active and former airline employees to contribute certain bankruptcy related payments to a roth ira. The act provides that any such contribution will be treated as if it were a rollover contribution from a qualified plan, except that any otherwise applicable income or contribution amount restrictions will not apply. The amount that may be contributed to a roth ira under the act is limited to he taxable portion of an eligible payment. I have form 8935 from the airline, 59,000 was paid in 2007 that applies to this... Question..I can take 59,000 out of the bank and put it in a roth ira... or I can transfer 59,000 from my 401k to a roth ira with no tax consequences?
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

Yes you can move funds from your bank account to the Roth IRA. No, you will not be able to move the funds from the your 401(k) to the Roth IRA.


See page 66 -





Bill and other Tax Specialists are ready to help you