Although a person would not have to pay income tax, would someone under 59 1/2 still have to pay the 10% early withdrawal penalty on after-tax distributions?

Thanks!

Does anyone have an Account Activity Report with an Insurance Premium column?

What should be done when a plan administrator (TPA) makes a mistake in the trust accounting, and therefore allocates way too much to the participants (pooled account), then pays out a couple of them. Later it is found that the terminated participants were paid out too much money. We are talking about $13,000 to $15,000 too much. Any advise out there?

i just read that if i roll money into a roth and later unconvert in the same year to lower the tax bill, i can't reconvert until the following calendar year. is that so?

Does the Gatt rate change again in January 2002 and if so how far in advance will it be announced. I am trying to decide whether to retire now or wait incase the rate goes down.

Sole practitioner sponsors Keogh/PSP for himself and spouse.

Due to financial problems, takes a loan of 100% of plan assets in 1997, to use for living expenses.

Does not file 5500 EZ for 1997 or subsequent.

Now has letter from IRS requesting filings from 1997 on.

Cannot restore 100% of plan assets but could probably restore 50% of borrowed assets.

Is there a voluntary disclosure program that offers a way to ameliorate or possibly resolve this situation?

I am a non-resident alien and working in US with H1B visa.

However, I am treated as resident for tax purpose.

My question is what is going to happen for me after I decide to withdraw from the plan and go back to my courtry, Taiwan?

I know that if I do so there will be a 10% penalty withdraw before age 59.5.

The question is beyond that point. I would like to know what are the different ways I can do after I withdraw the money?

Can I just roll it over to Taiwan's pension plan? How's this work and where can I find the rule about this situation?

Or any other alternative way instead of rollover?

What's gonna happen?

Please help me

Any reference will be good.

Thank you VERY MUCH

:confused:

I am a non-resident alien and working in US with H1B visa.

However, I am treated as resident for tax purpose.

My question is what is going to happen for me after I decide to withdraw from the plan and go back to my courtry, Taiwan?

I know that if I do so there will be a 10% penalty withdraw before age 59.5.

The question is beyond that point. I would like to know what are the different ways I can do after I withdraw the money?

Can I just roll it over to Taiwan's pension plan? How's this work and where can I find the rule about this situation?

Or any other alternative way instead of rollover?

What's gonna happen?

Please help me

Any reference will be good.

Thank you VERY MUCH :confused:

I have a 401k safe harbor plan that is satisfying the safe harbor using the mathcing formula. they want to add a new comparability discretionary allocation to the plan. can a safe harbor plan have a non-safe harbor discretionary allocation?

I have a profit sharing plan that currently has an integrated formula. The client wants to amend to a cross test however, there are no employees working for the company that are HCEs. The one possible person is an officer who makes under $70,000. Is is possible to have a cross test formula when there is no way to perform 401(a)(4) testing?

I have already discussed this with the people in my office and they say it's ok but I'm still not comfortable giving the officer 25%, a second tier 10% and everyone else 3%. I don't even really have to do the 3% since the plan is not top heavy.

:confused:

Has anyone had any experience in the last year or so with a voluntarily filed late 5500EZ? I have a prospective client whose MP/PSP Assets went over 100K 3 years back, but never filed. I have advised him to voluntarily file the late returns, but would also like to tell him what he may expect in regard to penalties.

I am trying to locate copies of Form 5500-C/R for 1993, 1994 and 1995. My Hyperprep software does not go back that far, and the IRS website only has the full Form 5500 for those years. Any suggestions would be appreciated.

Thanks

In reading USERRA and all the guidance I could find on the calculation of compensation to be used to determine the amount of contributions to which an employee is entitled under USERRA, it seems to me that the "theoretical" compensation must take into consideration increases that the employee would have received (i.e. annual performance review and salary increase) had he/she remained employed. Everything I read sort of hints at this, but doesn't come right out and say it.

I would like to get confirmation that this is correct or reassurance that this is something we don't have to worry about.

Thanks to all who respond.

My client has an attorney designed profit sharing plan. He is the only participant. Attorney says plan must be amended under IRS rules by 12-31-01. Cost will be about $2,000. I believe he can get around amending by switching to a P/S prototype plan such as a brokerage firm has in place. An IRS plan specialist says he can do this & he can even use the same plan number on the 5500 for this year & need not even mention the switch on the 5500 nor is it necessary to advise IRS by doing any special filings. Sounds like what I want accomplished but have I been given the correct information?

A plan changes lump sum interest rate from PBGC rate to 120% PBGC rate for distributions over 25,000.

Is there a deadline as to when this change can occur without having to be concerned over 411(d)(6) cutbacks?

Or another way of putting it. Is there a point in time when making this change would require anti cutback provisions applied to accrued benefits? i.e. where the accd ben must be based on 100% PBGC rate and not 120% PBGC rate. And where wearaway issue can apply.

A plan is 1.5% of avg pay less 2/3 soc sec annuity.

The Plan fails 401(l) as many individuals have a zero accrued benefit in the early years.

However, for 411(B) (minimum accrual) purposes can the offset be ignored?

If a plan does not adopt the model amendment to apply the 2001 proposed regulations in 2001, should a Required Minimum Distribution due by 4/1/02 be calculated under the rules prior to the 2001 regulations, or should the calculation use the 2001 proposed regulation rules?

Given how the IRS clarified this for distributions due 4/1/01, I would say that the 4/1/02 distribution should be calculated under the "old" rules if the model amendment is not adopted.

Agree? Disagree? Cite?

2 things I'm not clear on with ESOPs...

(1) Is the dividend deduction under 404(k) available to Non-leveraged ESOPs?

(2) Loan Amortization calls for 150 shares to be released at year end, but the actual contribution amount (based on compensation) compared to the present share price only calls for 140 shares to be allocated to participant accounts, what can be done with the unallocated shares? Conversely, if the share price falters and there is a shortfall of shares released from encumberance, does the employer need to contribute the additional shares required to allocate the contribution to participant accounts?

When would a participant in the following situation be required to start receiving Required Minimum Distriubtions?

Plan doucment defines Required Beginning Date as April 1 following age 70 1/2 for all participants.

Plan document will be amended by the end of the GUST remedial amendment period to leave the Required Beginning Date the same, but to state that participants reaching age 70 1/2 between 1/1/97 and 12/31/01 (or possibly 12/31/02) will be given the option to defer their distributions until termination of employment (in accordance with IRS guidance).

If a participant that turned age 70 1/2 in 2000 elected to defer distributions until termination of employment, and the participant terminates employment in 2004, would the participant be required to start distribution prior to 2004?

Under the 2001 proposed regulations, a plan document can specify that the Required Beginning Date is Age 70 1/2 for all employees. Under SBJPA, the Required Beginning Date had to be defined as the later of age 70 1/2 or termination of employment for non-5% owners. However, plans that were not amended for SPJBA could give participants the option to defer distributions.

So which takes precedence, the employee's option to defer under SBJPA, or the 2001 proposed regulations? Would a participant who had made the election to defer be required to start distributions as soon as the 2001 proposed regulations become effective (in 2002 unless the model amendment is adopted)?

Does anyone know where I can find a sample WHCRA notice for an spd?