austin3515

Sweet, THANKS!!

Yes, they can take a distribution?

Johnny divroces Susan. Both are participants in the Plan. Johnny owns 100% of the business. 1) Can Susan take a distribution to the extent of her QDRO proceeds? All of the money came from Johnny's 401k balances. Neither one is over age 59 1/2. The document does say that QDRO's can get paid out "as soon as possible" (i.e., you don't have to wait until the participant terminates), but now it is the participant themselves who are not eligible. 2) We've usually treated QDRO's as in-service distributions, to add them back for 5 years for top-heavy. But that doesn't seem to apply to well here. Any help is appreciated...

I have the patience nor the desire to figure out why clients do what they do. The important thing is that they did

We need to do a 1099. We used FT for our fulfillment so we have no red forms. 1) Anyone know where to get a handful of red forms? 2) Would the IRS really reject if I sent in a laser printer version of this thing??

Interesting... I'm a convert. It's out

Everything I see references compensation paid "after severance from employment" 1.415©-2(e)

Can someone point me to a good sample qdro available on-line? I looked at the IRS's version, but it is far from a "true template." Apparently Florida has rules where you can divorce without attorneys so they are not using any attorneys at all.

Talk about a gotcha... I bet this is actually not that uncommon (though probably rare enough). Cash rich companies would rather not have to keep sending paychecks, and more importantly end the relationship, and often hand deliver the last check on the last day (especially if the last day is the day they are told!).

Let's say someone's last day is Friday, and on the day befpore (thursday) they get a check that includes a month of severance. Is it excluded or included? The money was received PRE-severance.

OK, so I know the 5500 instrucitons say "don't reprot aything on Schedule A that is already reported on Schedule C as indirect compensation." But am I correct that if I'm doing an S-F, I should include on line 10e (payments made by insurance companies) the indirect expenses paid by the insurance company (in this case Great West?).

I'm doing a little program, kind of a mail merge to do extensions. It doesn't matter if the 5558 is slightly off spec, correct? Visually you can barely tell, but if I hold up the pdf I printed from the IRS web-site, I find that they are slightly out of line.

Doctor A sells his dental practice in 2010. Doctor A buys the assets of another practice in the summer of 2011. There are 3 employees at this other practice, one of whom (believe it or not) worked for Doctor at practice A. Can we recognize service with Doctor A's OldCo when he sets up a plan an NewCo? This will bring the Doctor AND that one older employee from day 1. My question hopefully demonstrates that I am aware that I need to be wary of discrimination issues. The amendment will benefit 1/3 of the NHCE's, so it does at least benefit a decent percentage. But I did not see what the measure of testing was. Is it BR&F? It seemed to be based on facts and circumstnaces, whiuch for a 3 person plan I might be inclined to advise liberally (with ample CYA).

I agree that would be another good reason, but in this scenario, everyone had self directed. And knowing the person involved, he is very very conservative aboutt his kind of thing so I believe it is what Tom was suggesting. Interestingly, I wonder if QDROhile is partially right as well. You say, "hey, the IRS could really come down on you hard, so I recommend having all of these individual plans" so you get more fees and can still sleep soundly at night. The more I think about it, really isn't that big of a deal to do this. You could have one "plan" on Relius (or whatever), you could even have everyone on a contract at John Hancock. So you really just have to do a few extra 5500-EZ's (since you now do not have to pass coverage in order to use the EZ).

I believe I've been down this road before and heard there was actually some basis in compliance matters (other than SAR and 5500EZ's).

Why woluld you have a separate plan for each owner? We're taking over a plan from someone we know is "legendary" so we know there is probably a very good reason!

Self employed individual. Trying to figure out if it makes sense to load up the profit sharing before doing any 401k (forget about the year-end election thing for the time being). Are the two treated any differently for payroll taxes? My belief is no, they are not. I know the owner gets no deduction for the 401k, and I don't believe they get a deduction for the profit sharing. Since it is very connected, I will say that I've always been bothered by the fact that they don't get to deduct their SE income for profit sharing because I believe that puts corporations at an advantage over self employed peple (i.e., S-Corop owners do not pay payroll taxes on the amount of their profit sharing. Any thoughts?

Got a client who is considering trying to get the employees out of the union pension plan. He asked for an estimate of withdrawal liaiblity and the response was that "they don;t have a withdrawal policy at this time." So essentially, they left the door open on them. The Plan also does include a past service credit (they adopted maybe 6 or 7 years ago), which I would think would trigger a withdrawal liability at this stage for sure. Is there any way to compel them to provide a more concrete estimate?

401k eligiblity is immediate. Let's say plan uses sem-annual entry dates to determine whose in the main test. Can you exlcude compensation (and 401k) contriubtions for periods before the Participant became a statutory employee? I had notes somehwere concluding that you could only exclude compensation from a period BEFORE PLAN ENTRY - not from before becoming a statutory employee.

AS "moving expenses". But I want to make sure that it's not just a name...

521 only telss us what deductible expenses are (I took a quick look through as well). Doesn't have a lot of discussion regarding non-deductible expenses. And the definition of deductible expenses would generally be a moot point since it would not be taxable wages anyway... And the exclusion is "moving expenses" - NOT "Moving Expenses as defined by code section 123." It seems to leave the door open for interpretation. Again starting with the assumption that we are discussing non-qualifying moving expenses to begin with (At least if your're using w-2 or current includible).

In order to get a key employee (not a 416 key employee, just an important one!) to move back in-state from a division in another state, the company has agreed to pay off his out-of-state mortgage through a bonus. Can this be considered a "moving expense" which is excludable? We checked the box to exclude taxable fringe benefits, moving expenses, etc. etc.

IU'm confused - if the paerticipant meets the plans definition of total and permanent disability and the plan allows for distribution at this point, then it's not question of employment status any longer. He is eligible for a distriubtion under the disability provisions. And if there is a benefit provided under the plan, then nothing written anywhere will take that benefit anyway. SO for example, if the CBA said "no distributions will be paid upon disaiblity" that the provision would be moot because eliminating that benefit would be a prohibitted cut-back. So I guess you could genralize and say ERISA always wins...

Participant takes a hardship for a home purchase, but the deal falls through. Can the money be re-contribyted? I think not, but in this case it's a decent chunk of change.

That's the one. Only other one I know of is to limit the top-heavy minimum to a few pennies. But yes, in this case, I have an HCE that wants to save for retirement who "only" makes $120K. So he's deferring about 15% of pay. The owner has oodles of money and would prefer to allow this fella to save for retirement. Just warms your heart, doesn't it?