i know you can withdraw your original contribution w/o any penalty or tax consequences.

but how do you document it on the tax return.

what forms do you fill out to say that the distributions reported on the 1099R are the original contributions?

i'm not finding any clues on the irs website,nor is my tax software helping either.

help!!!!!

i'm fustrated.

Can anyone give a legally correct answer to this question and provide sources to support the answer. I currently have a funds in a QDCF plan (Qualified Deferred Comp Funded plan). I would like to start taking distributions now. However, the form requires "spousal consent" because my spouse is the beneficiary. It doesn't seem fair that I can not even retrieve my own retirement funds if my spouse doesn't care to cooperate. Is this requirement legal or just an attempt to retain my funds and cover themselves. I don't know if this is considered a 457 plan or not.

Thanks

Can anyone give a legally correct answer to this question and provide sources to support the answer. I currently have a funds in a QDCF plan (Qualified Deferred Comp Funded plan). I would like to start taking distributions now. However, the form requires "spousal consent" because my spouse is the beneficiary. It doesn't seem fair that I can not even retrieve my own retirement funds if my spouse doesn't care to cooperate. Is this requirement legal or just an attempt to retain my funds and cover themselves. I don't know if this is considered a 457 plan or not.

Thanks

Is it permissible to amend a plan at any time to change the stability period for determining lump sums from one year to one month? We have a plan that we would like to terminate and would like to take advantage of the recent higher 30-year Treasury yields.

When I was like 14 someone gave me 2,000 into a Roth IRA with charles schwab. Well the money went down to like 400 bucks and I withdrew it. I didnt pay any fees or penalties. Atleast not that I know of? I was like 14. Will that have any effect on my current Roth IRA that I have with T.Rowe price now that im 23. Also when I hit 59 1/2 would what I did when I was 14 and withdrawing that 400 dollars effect me in any way? Or am I ok?

thanks! Dave

Employee age 55 made 14K in deferrals. Can we allocate 32K as PS cont for a total of 46K and still consider the 4K overage as catch-up?

Please advise.

When do you have to file a 5500 for a 125 Plan? What are the requirements?

If a participant has a life insurance policy within their Profit Sharing Plan and dies - and let's say the death benefit is $70K and the cash value at the date of death is $25K - would the difference of $45K be considered the tax free amount? Thanks!

I just ran the ADP test for PYE 12/31/2005 and the test fails. One HCE is due a refund of $6.04. Even though the refund is less than $10 (and no Form 1099-R will be issued) we will still make the distribution of $6.04.

Since this distribution is occuring after March 15th (2 1/2 months after the close of the plan year), do we have to pay the 10% excise tax? After rounding, the total is $1.00. I think the right thing to do would be to pay it, but it is an awful lot of work for such a minimal amount.

Any thoughts on this? Any input would be greatly appreciated.

Thanks!!

If a plan previously had a benefit formula with under the old integration rules (before 1989) and then continued to provide for disparity under the newer permitted disparity rules, does the 35 year cap on YOS include both years earned under old integration rules plus years earned under the newer permitted disparity rules (vs. just starting from 1989 forward) ?? I'm thinking it includes both but would appreciate a confirmation if true.

A multiemployer group health plan with several participating unions is interested in converting their existing "dollar bank" into an HRA/HSA type account that could be used to pay health premiums, out of pocket expenses, etc. For those who are not familiar, a union construction worker will have a set amount of money paid to a health fund for each hour he works. The plan in question puts the contributions into a "dollar bank"--a hypothetical account balance from which deductions are made in the amount of the monthly premium.

One question that has arisen about the conversion/establishment of an HRA/HSA is that many of these members already have similar accounts through their local unions. Is there any legal prohibition against an employee having two or more HSA/HRA accounts established in his name?

I also posted this on the 401(k) board as it is an for two different plans.

Is it possible to freeze an elective deferral-only plan to future deferrals and participation, but allow employees (including new ones) to rollover contributions from other plans into the frozen plan? My concern with the 403(b) is not just the "is it really frozen" but also the universal availability rule.

I feel like I should know this, but I can't find any discussions - either general or 403(b) specific.

Thanks in advance

Hello Folks,

I stumbled onto this site and have been reading for hours now. Those of you who offer information and guidance to those of us who need to hear it in a straight forward manner are rare individuals and my thanks go to you for being so generous.

I am a 47 yo business owner. When I was younger, I did not have the foresight to understand the importance of early savings. I spent 15 years with a very large corporation and thus have a retirement income scheduled from them, provided they do not experience financial difficulties at some future point and simply erase any benifit I have earned. Obviously SS has its own issues and I do not attempt to count on its benifits.

For the past 13 years, I have been unable to do much saving because of the financial burden of starting and maintaining a small manufacturing business. Over this time things have improved financially to the point that I have eliminated all debt, personal and business, except my primary home. I currently have about 12 years remaining on a 15 year fixed mortgage with about 40% equity, and my income is now stable enough that I have begun saving and have resources to fully fund a Roth account and additional each year. I have built an emergency fund for approximately 6 months of expenses.

The problem is I feel like I am trying to play catchup for retirement. Im not so much interested in retiring at a given date as I am simply facing the reality that I will retire someday and want to be as well prepared as possible.

I have enough time, inclination, desire and knowledge to be interested in investing in individual stocks and have opened an account with Scottrade to do so.

My questions to you would be, What opinions would you offer in regard to investing inside or outside of a Roth account? What are your opinions regarding my particular age and situation for retirement planning and is Roth the best place for me, at least to the limits allowed by the program?

Thanks for any help you might provide.

Is it possible to freeze an elective deferral-only plan to future deferrals and participation, but allow employees (including new ones) to rollover contributions from other plans into the frozen plan?

I feel like I should know this, but I can't find any discussion. Thanks in advance.

If an employee was a union member and was put on layoff with 5 years recall rights but never recall but was later rehired and he was credited with 501 hrs per year. would those years of credit be eligible for his retirement and did his credit years quit when his recall rights run out or would they contiue untill his rehire. i can get no help from the union.

Does anyone know of a free calculator to determine the right mix of IRA and Roth conversions during retirement?

I live in California and I'm doing a Traditional to Roth IRA conversion at Sharebuilder.com, they claim that California Law requires that they withhold part of the conversion for taxes (can't opt-out) - regardless of whether there will be any taxes.

My question is, since they have withheld some of the conversion money, how do I eventually get that money into my Roth IRA? To my knowledge even if you do owe taxes on the conversion, you can pay them out of non-IRA money, so how do I get the withheld amount deposited into my Roth?

I assume this is a common scenario (part of IRA being witheld for taxes), can someone please let me know how this should work?

Question 1: We distributed 100% of a participants account balance. Later they receive a true-up of the employer contribution for less than $10.00. The cost of a check and 1099-R is more than $10.00. Can we forfeit or gain/loss the participants account or do we need to send them another distribution check?

Question 2: Plan has distribution fees of $85.00 charged to the participant the day before a distribution is processed. Do we charge a distribution fee if the participants account is less than $85.00?

If you know the answer to either let me know. Thanks!

Plans excludes union employees from participating. The plan’s normal entry dates are 1/1 & 7/1.

Effective 11/1/2005, six union employees become non-union. All six employees have previously satisfied the statutory eligibility requirements, that is, they all have completed more than one year of service and are over age 21.

I am currently having a discussion with the attorney who prepared the plan document as to when these six former union employees would enter the plan --- is it 11/1/2005 or 1/1/2006?

Our non-standardized prototype plans contains language which clearly indicates that these employees would enter the plan on 11/1/2005 if the plan was using one of our prototypes. However, the document for this plan is silent on when these former union employees would enter the plan. We have not been able to find anything in writing in the regulations, etc… which specifically addresses this issue.

Does anyone both know the answer to this question and have a citation to support your answer?

Thanks!

Help! Company A maintains a 401(k) plan for its employees on a calendar year plan year. Participant M was employed by Company A during 2005. In a letter date stamped April 6, 2006 but delivered to the appropriate people on April 13, Participant M notified the Company A plan administrator that s/he had an excess deferral during 2005 and requesting a timely correction of the appropriate amount plus earnings. The plan administrator was advised to process the change this afternoon (since there is no extension to the 4/15 date to the next business day in the case of a weekend). In addition, the stock market is closed for Good Friday tomorrow so if the trade order is received late the participant will not be timely corrected. This would result in the participant being taxed in both 2005 (the year of the excess deferral) and 2006 (the year of the corrective distribution). Any suggestions on how this can be corrected and the double taxation and 4979 excise tax avoided? (Participant M is 37 so recharacterizing the excess as a catch-up contribution doesn't work).