May someone have both an IRA and a money purchase pension plan?

Does any law or regulation prohibit having both a personal IRA, or any sort of IRA, and participating in a money purchase pension plan simultaneously?

One hobby I have is riding "quads". (My icon is a picture of the quad I had.) My whole family and I go to a riding park whenever possible. Well, last weekend some jerks broke into our "quad garage" and stole my quad, and the quad of my oldest son. That son is currently studying for the armed forces test to become a helicopter pilot for our army, and just got the quad for his HS graduation. While I know that this board is not for reporting crimes, just wanted to vent about how crappy some people can be. Kinda makes one wonder. :angry:

Does anyone know of an up-to-date source that fully lists the current status of all EGTRRA sunsets? Some were fixed by PPA'06, but there were so many parts of EGTRRA w/ sunsets, it'd be nice to have a clean and clear listing of what's going to revert back on us.

We have an employee who has a loan through our 401(k) and is making payments via payroll deduction. She is experiencing financial hardship and would like to stop repayment of the loan. What are the consequences for this action? I know it is in default for her and it is treated like a distribution. Are there any consequences for the plan? How should this process work?

Thanks.

We have an employee who has a loan through our 401(k) and is making payments via payroll deduction. She is experiencing financial hardship and would like to stop repayment of the loan. What are the consequences for this action? I know it is in default for her and it is treated like a distribution. Are there any consequences for the plan? How should this process work?

Thanks.

Duplicate post: go here: http://benefitslink.com/boards/index.php?showtopic=43698

Clearly, a 401(a) plan and a 403(b) plan must be aggregated when applying the 402(g) limits and catch-up contributions. But what if the employer has a 403(b) plan and a 457 plan? Can the 50+ employee contribute $16,500 in elective deferrals and $5,500 in catch-up contributions to each plan, essentially "double dipping"? I have not found clear authority on this matter, but have noted that 457 plans seem to be treated separately for so many of the retirement plan rules.

Thank you!

Help!

We have a client who changed their name & ein back in 2005. 5500 for 2005 properly reflected these changes in the entity control section. Client recieved notice recently from IRS proposing a $15,000 penalty for not filing a final return for the old company/ein in 2006 showing a zero balance.

I called the IRS and they noted that the entity change reported on the 2005 5500 does not "close out" the reporting requirements for the original sponsor name/ein. Even though the sponsor just changed their name & ein, they are required to file a final 5500 for the former sponsor reporting transfers that never actually occurred. The rep noted that everyone does this wrong and it's not clarified on the 5500 instructions.

Has anyone else run into this? I can usually press the issue with the IRS and get it dropped with a letter but that's not working in this situation. I believe I can get the proposed penalty abated, but will continue to have to respond to annual inquiries until the client actually files a final return.

Any thoughts you may have on this would be most appreciated!

Have a client that is buying up medical related businesses in several states, all doing the same type of business. The client owns 100% of each separate entity. Each entity has about 40 potential participants and all together have about 200 potential participants. Could he have each entity adopt its own plan, each plan identical to the other, file separate Forms 5500, and avoid going over the 120 plan limit for audit? Of the 200 participants only about 40 will actively participate.

It was discovered by a f5500 preparer after 10/15 that on 10/15 (under extension) the employer simply mailed the f5500 to EBSA without having signed it. What to do?

1-Wait til EBSA rejects it for lack of signature, or sends it back for one

2-Employer signs an identical copy now and mails to EBSA

3-An identical f5500 is marked "amended" then signed and mailed to EBSA

Executive is entitled to severance benefit 30 days after termination for Good Reason, where the definition of "Good Reason" does not precisely satisfy the safe harbor and the amount of severance is in excess of 2x salary. Assuming the severance does not qualify for the 409A exception for separation pay plans under 1.409A-1(b)(9), can the payment still qualify for the short term deferral exception? It seems to me that it should qualify for the STD exception so long as the conditions constituting "Good Reason" qualify as a substantial risk of forfeiture.

Please let me know if you agree with the analysis.

Thanks.

Aaron

I have a plan that was 100% vested for the match & profit sharing. They have amended their plan to now have a vesting schedule for anyone hired after 1/1/08. The new vesting is a 2 year cliff. Would a BRF test be required?

Another BRF question, distribution options:

1) a group of employees within a plan are allowed in-service withdrawals prior to age 59 1/2. (5 years of participation and contribs must be in plan for 2 yrs) This is a protected benefit only allowed to a small group of ees. Does the plan need to do a BRF test since this option is not available to all?

Even though it doesn't make sense to do this, can't a plan allow in-service distributions prior to age 59 1/2?

Participant filed chapter 7 bankruptcy early in 2009, so his attorney advised him to stop making payments on his plan loan. We know that we need to report this as a taxable distribution. The participant wants to know when he can take out a new loan. I do realize that he may not be "credit worthy", but besides that, what other restrictions do we need to consider? If the plan only allows one outstanding loan, does this mean that he cannot ever get another loan?

In case you were following the Continental Airlines case, where several pilots allegedly (?) created sham divorces so that a QDRO could be used to get at qualified plan money, it appears the judge has said "none of your business" to the company.

http://www.chron.com/disp/story.mpl/business/6675081.html

shareholder took out a loan in December 2007 for $50,000.

In November 2008 he took out another $25,000 loan.

Plan does not allow for inservice distributions.

The employer has been self-administering this plan.

Their CPA prepares the 5500.

The November 2008 loan is in excess of allowable amount and so is a prohibited transaction and a deemed distribution for 2008.

The shareholder is making payments on the $50,000 loan and is current on that.

He has not made sufficient payments on the second loan.

He will repay the second loan before the end of 2009, with interest, which will cure the prohibited transaction.

Under the Sec. 72 regs, is the second loan deemed again in 2009 because it was unpaid on January 1st?

Thanks.

Can funds from a SIMPLE 401(k) be rolled over into a SIMPLE IRA?

The following questions was previously posted:

In information published by the DOL, it seems that the payment of investment advisory fees with plan assets is o.k. However, what if a participant goes out on his own, hires an investment advisor to assist with his investments in his 401(k)? This plan is a participant directed 401(k) where all employees use the same 21 funds. The employee feels overwhelmed and has hired a personal investment advisor to review his 401(k) account and provide investment advice for a fee. All plan participants have this same opportunity to use an outside investment advisor. Can the participant ask that the fees associated with this be paid from his account balance? In other words, could the investment advisor fees be paid from his account when this is done on an individual basis, and not an employer initiated/plan basis?

I am now investigating the same scenario and wonder if anyone can provide any comments, guidance, authority, etc.

Any suggestions on what to charge a single employer DB client for the PPA amendment? DC client?

Thanks.

My annual COLA & Rollover chart is attached in pdf format.

• It may be freely distributed within your organization. For additional permissions please contact me.
  

• Laminated versions of this and other helpful retirement related charts are available at Reference Guides
  

Note. This chart includes the correct 2010 HSA limits.

COLA_RO_2010.pdf

Back before I was 21 and eligible for my company 401k, my father helped me open a small IRA. I got statements on it for a while, but nothing for a while and recently I remembered it and decided I need to track it down and figure out what to do with it. I called the company it was with and they couldn't find anything under my name or SSN. Could they have just closed it if I hadn't done anything on it for many years?