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Based on my google search it appears that I have until 12/31/2025 to amend a 401(k) Plan for the 2026 Plan Year regarding the Safe Harbor Match. However, I cannot find anything that specifically states that the Amendment can change the Safe Harbor Method from a SH Match to the SH Nonelective. Is this allowed? The client has already distributed the SH Notice to the Participants stating that the Plan will provide the basic SH Match for 2026. If the 401(k) gurus out there believe I can amend the Plan, then I will prepare a new Notice stating that the Plan will be providing the SH Nonelective rather than the Match. Thanks for any input.

Thank you. I have been talking to the CPA. If my memory is clear I think I basically passed along what you have described. I will follup with them. Thanks for chiming in! I certainly appreciate it!

for The Finway Group (Remote)View the full text of this job opportunity

And Denise Appleby has tireless experience in helping people get the most that can be gotten from the recordkeepers, insurers, and custodians.

That employee must receive a SEP contribution for 2025.

You are right,except: Not only would they need eligible compensation, but the MAGI caps apply. It's October 15, not 31. Technically, April 15 (tax filing due date) with an automatic 6 month extension if they file by tax filing due date. Technically, NIA, which can be earnings or losses If the deadline is missed, a 6% excise tax would be owed on the excess

Agree with Peter. But I know from experience that TIAA will not "treat that estate’s ultimate taker as if she were the plan’s beneficiary or at least a distributee". Also, this sounds like a non-ERISA 403(b), since the spouse is not the default beneficiary. If they are saying the estate is 50% beneficiary, they should be able to explain how and why they cam to that conclusion. Assuming they are right- she might be able to rollover any distribution (made to the estate), to her own IRA ( many PLRs have allowed such rollovers). In this case, it would be her treating herself as the distributee- but she must consult with her CPA or attorney with expertise in such rollovers before completing any such rollover. No- there is no such thing as a see-through estate. PS; the See-through trust would affect only the calculation and the option for rollover. Generally, rollovers are not permitted for estates, but the IRS have made exceptions in cases like the one you describe.

Disregarding the RMD situation. If the IRA beneficiary is an Estate then it would need to follow the 5 year distribution rules. You wouldn't set up inherited IRA's for the beneficiaries of the estate

I'm scratching my head why someone would want to do an in-direct rollover for a Roth conversion.. You can't do a rollover of an RMD nor can you do a Roth conversion of an RMD. It would seem like you have a $22,000 taxable Roth conversion and an $8,000 taxable IRA withdrawal. Without looking up how to fix this, it would seem like you would have to take out the $8,000 with earnings and possibly penalties. Not sure where you are getting the Oct 31, 2026 date.

for SetAway, LLC (Bedford NH / MA / ME / VT / Hybrid)View the full text of this job opportunity

Happy Holidays from sunny Florida!

No, the bonus check will be issued on 12/31

But has the bonus check been paid to the 2 owners? If the answer is yes, no deferral allowed.

How about the amount that the State’s law counts as income? Or the amount that results from following the State’s law, regulations, guidance, or withholding instructions? Either of those might differ from either of the amounts you describe. And could vary for each State’s law. Under (at least) Alabama’s, New Jersey’s, and Pennsylvania’s law, withholding might vary regarding the portion of a distribution that (if not excluded as old-age retirement income) is treated as a return of previously taxed income. Under Pennsylvania’s law, old-age retirement income is excluded from income. Under New York’s law, some kinds of retirement income might be excluded from income, up to a limited amount. This is not advice to anyone. If my response is a winner, please send my cookie to the Bakers.

And what distribution amount from what source are you asking about?

State withholding is determined by state law and can vary from state to state. I know some states essentially adopted the federal tax code with respect to definitions, e.g. wages and gross income, and I suspect most states do. How many cookies do you available to award?

We are working on the document now and should be signed by Friday the latest and the Advisor can set up the accounts within a day of the document being signed. So it is a rush but appears that it can be done.

Feels like something you'd find in the actual plan document, whether eligibility would be preserved upon an amendment like that.

I see. Those are good points. Thanks!

Please help to settle a disagreement in the office - is state withholding calculated using the gross distribution amount or the federal amount? Winner gets a cookie.

A 73 year old has their first RMD this year of $8,000. After reading an article on Roth conversions, the IRA owner elects a $30,000 Roth conversion before withdrawing their RMD. It seems the IRA custodian allows this as the IRA owner's intent was to do a rollover, taking possession of the $30,000 withdrawal and within 60 days, deposit it in a Roth IRA (his first) as a Roth conversion. But the $8,000 will be considered the RMD withdrawal, not a Roth conversion while the remaining $22,000 will be considered a Roth conversion. So under these circumstances, assuming this 73 year old or his spouse has no earned income, that an $8,000 excess contribution has been made to his Roth IRA? If so, the IRA owner has until Oct 31, 2026 to withdraw the excess Roth contribution and its associated earnings. Is this correct?

Give me a call. I know a guy who can help someone or something 'disappear' 😉

Is there time enough to get the investment accounts properly set up?

I may or may not have seen some of these manually signed documents due to "issues with electronic signature software" and other similar explanations.

A firm’s mix of capital-interest partners, income partners, retired partners, counsel, senior associates, beginner associates, and assistants might affect: which workers seem likely to desire an opportunity to make employee (after-tax) contributions; how student debt affects a worker’s capacity to make contributions; how the expenses of QMACs are spread—for example: to capital-interest partners only? or to an income partner to the extent, wholly or partly, an associate or assistant in her income-measured practice gets a QMAC?; how much or how little leverage affects partners’ capital and profits interests; how the firm’s obligations to retired partners affects the firm’s financial capabilities; how a retirement plan’s design and features affects workers’ perceptions about the firm.