I have been reading the other threads and trying to apply my situation but I want to be certain so I apologize if this overlaps.  I have a solo company, landscape company.  It's an S Corp. Takeover plan, CPA has been allowing the owners to withhold after year end stating they have until 4/15 but then going back and adjusting their W-2's.  From what I have researched, if it's S Corp, they have to take the withholding from their reasonable compensation by 12/31.  Am I correct?

It’s been five years since I retired and I’m pleased to admit that I have forgotten everything pension except the friends I made as a result of BenefitsLink.

That special rule for missed deferral opportunity in an auto enrollment plan was set to expire 12/31/2020.  Does anyone know if the IRS extended it somewhere along the way?

Would this be an acceptable formula for SH QACA Match: 200% on first 1% and 50% on next 5%. 

What is the tax reporting on an excess pre-tax deferral that happened in a 401(k) for calendar year and plan year 2019, but was distributed in April of 2020 from a rollover IRA account? 

Plan trustee sends a corrected 2019 1099-R in April 2020 with the lower/corrected amount. For example, $40,000, but excess was $10,000, so the corrected 1099-R shows $30,000 on the corrected 2019 1099-R. The IRA custodian reports a 2020 1099-R with a code 1, so the funds are subject to an early distribution penalty as participant is under 59.5?

Any help to explain how the plan should have reported and participants should have handled with 2019/2020 ind taxes is much appreciated.

I used to have a chart that listed a bunch or retirement plans and which could be had in the same year and which couldn't

Anyone have anything like that?  I've been looking through everything I have and cannot seen to locate it.

We have a NQDC plan and the Plan Sponsor wants to terminate it since no employees are funding to it any further. There is one participant remaining with contributions invested in an annuity. Participant doesn't want to take a distribution so there is no request to accelerate pay out. Can the plan be terminated with an account balance remaining in the plan, or must the assets be distributed upon plan termination? If so, would the suggestion be just to freeze the plan rather than terminate it?
 

I'm seeking to convert a Traditional IRA to Roth IRA (backdoor Roth).  All of the contributions to the Traditional IRA were non-deductible due to income limits EXCEPT that it includes a loan offset rollover contribution (401k loan taken out, laid off, did a loan-offset rollover for the loan amount into the IRA).

Is the loan offset rollover amount "deductible" or "nondeductible" for conversion purposes?  Trying to calculate the pro-rata taxable amount since the account now includes investment gains that would be taxable, but don't know how to classify that loan offset contribution. 

Thank you for any thoughts you have.

Hi

Client asked for a loan from the DB plan last December. Sent the paperwork with all instructions.

Client signed the form but did not get the spousal consent nor the spousal consent was notarized.

Client took the loan out from the DB plan in December.

What is the corrective method for this, if any?

Thank you

Hi

Dealing with an overfunded defined benefit plan (DBP). Plan covers only the owner and spouse and not covered by PBGC.

Client asked me if he can pay the following fees from plans assets:

1. He has an independent contractor (IC) working for him on a personal level (family related matters) however sometimes helps gathering annual data for the DBP. The IC is always paid from personal funds. Client wants to know if the fees related to the time spent on the plan related issues can be paid from the plan. 

2. The client's CPA for the sponsor also does help with plan related issues and client wants to know if time spent on plan related issues can be paid from the plan's assets to the CPA directly from the plan.

3. Client, as the trustee, wants to get paid from plan assets for his services to the plan as investment advisor. Per my research, possibly not doable but I may have missed something here.

I am sure there are some questions I am asking/thinking of.

Your comments are appreciated.

Thank you

We have a participant in a 401k plan who is 74 years of age and was terminated in 2020. He will be subject to the RMD in 2021 and he wants to rollover the entire balance to an IRA. He also has a Loan Balance, which will have to be offset. Can the offset be used to satisfy the RMD requirement?

Thanks!

Some publications indicate that the DCFSA limit of $5,000 for 2021 needs to be adjusted for any rollover amounts from 2020 (i.e., if P rolls over $2,000 from 2020 DCFSA, their 2021 DCFSA election cannot exceed $3,000). Does anyone agree with this? Thanks in advance.

Can we set focus to first unread rather than top of topic?

Non-governmental 457(b) plan permits make-up contributions within the 3 years prior to Normal Retirement Age (age 65).

Participant is age 64 as of 12/31/2020 and his prior year contributions have been as follows:

For 2020, the last year in which the participant is eligible for make-up contributions, is his max make-up contribution $2,000 (the sum of the unused limits)? Or, is it $11,500, the sum of unused limits from 2013 - 2016? 

Basically, do I reduce the $11,500 each year in which he made make-up contributions? I think so, but just looking for confirmation.

This is kind of an off-shoot of another question I had earlier...

For the many plans that have a YOS requirement (or some other hours... but mainly YOS, I suspect), there might be an issue where employees who were otherwise expected to be working enough hours to meet eligibility had their hours reduced due to COVID (layoffs, etc.) and now didn't meet that threshold in whatever eligibility computation period you're looking at that covers 2020.  These people just... don't become eligible yet, right?  Nowhere in any of the regulations or relief was there anything like they get additional credit for some number of hours for purposes of X, Y, and Z including retirement plan eligibility, was there?

Not that I'm expecting that people who were out of work for months to be putting retirement savings at the forefront of their financial decisions, but this also likely affects eligibility for safe harbor and other employer contributions, so they're going to be a year behind (in the best-case scenario) for those contributions.

Hi.  Physician practice is wholly - owned by Doctor.  The Practice pays for the premium cost for employee-only coverage.  If an employee wants to elect family coverage, the employee must pay for the additional cost.  The Doctor, however, has family coverage; and the Practice pays for entire cost of his family coverage.

Does this create an issue?

Thanks.

Wondering what others think...the general instructions for the 1099-R forms indicate a mailing address for us in NYS as:

"Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301"  (same as last year)

However I see on the actual 1096 "red" copy a filing address as follows:

"Internal Revenue Service, Austin Submission Processing Center, P.O. Box 149213, Austin TX 78741"

I'm assuming that the forms will get there either way, but would like to advise my clients accordingly for proper filing.

Thoughts?

If the ACP test fails and the match has not yet been deposited since it is calculated on an annual basis, do gains need to be included in the amount that is refunded?

Would like to hear opinions on the following question: 

Plan's eligibility provision requires one year of service, vesting is 5-year cliff and Plan's normal retirement age is later of age 65 or the fifth anniversary of plan participation. NRD is the first of the month on or after NRA. 

Participant is hired at age 65, hits the one year of participation requirement at 66 (in the following year). He attains 5 years of vesting service in the year he hits age 70 so he became fully vested a few months before he hit his NRD (since he won't hit 5 years of participation until the beginning of the next plan year when he hits age 71).  He then continues to work beyond NRD -  working full time until he retires at a late retirement date, age 73.     (Plan provides for suspension of benefits in cases of delayed retirement, but this may not be relevant here since the participant's NRD falls later than 4/1 after the end of the calendar year he attains 70 1/2). 

When the participant eventually terminates (at age 73), is the actuarial increase starting date: 

(a) 4/1 after the end of the calendar year he attained age 70 1/2?

 or

(b) NRD (i.e., the first day of the plan year in which the fifth anniversary of his participation occurred)?  

I think I know the answer to this but was hoping to hear if that is correct:

Participant enrolls in a 401k plan in 2016 and names his wife as beneficiary and son as contingent beneficiary.  Lump Sum only distribution, no J&S.
The wife passes away and then, the participant passes away on 2020.

The participant had remarried (not sure when) before he passed away in 2020.

A new beneficiary form was not completed.

Is the son still the beneficiary since he was named as the contingent beneficiary on the beneficiary form that is on file?  Or is it the new spouse, even though there is no beneficiary form stating her as the beneficiary?

I think the new spouse is the beneficiary.  Any comments are appreciated.