jevd

If you are talking about substantially equal payments from a qualified plan, the individual must be separated from service to qualify. If the participant was not separated, you may not have qualifying withdrawals under 72(t). See below (B) Periodic payments under qualified plans must begin after separation Paragraph (2)(A)(iv) shall not apply to any amount paid from a trust described in section 401(a) which is exempt from tax under section 501(a) or from a contract described in section 72(e)(5)(D)(ii) unless the series of payments begins after the employee separates from service.

What about (if eligible for in service) take as much as he can & roll to IRA. Then start a SEP plan for employer contributions and leave only deferrals in K plan. That way the $ wouldn't add up as fast. ??

Probably a free thinker. How long will they last??

Here is a site for all of you who like to track legislation, especially if you can't remember or don't know the bill #. http://www.senate.gov/pagelayout/legislati...eg_page.htm#top

Thanks

Here is the language. it removes the reference to educational organization. Somebody please explain what this really does? SECTION 1. CONTRIBUTIONS TO SECTION 403(b) PENSION PLANS ALLOWED BY STATE GOVERNMENT EMPLOYERS. (a) In General- Clause (ii) of section 403(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking `, who performs services for an educational organization described in section 170(b)(1)(A)(ii),'. (b) Effective Date- The amendment made by this section shall apply to years beginning after the date of the enactment of this Act.

Gary, I certainly appreciate the depth of your research and the detail of your explanations. Thanks You and the others straigtened me out; I thank you for your participation. --GSL

Participants cannot roll to SIMPLE IRA. Only SIMPLE contributions may be in a SIMPLE. Participants could roll to a traditional IRA

You need a distribution event. Change of plans does not constitute a distribution event. See previous posts on this issue. If a distribution event occurs then a rollover to an IRA is allowable. See IRS PUB 571 & 590

Thanks Merlin. He's a 5500EZ ( One Participant Plan) I just wish the IRS would adopt a formalized plan for delinquent filers for the 5500 EZ filers with a reduced penalty similar to DOL.

Ask the IRS for a written confirmation and see what happens. Do you know the % of incorrect answers the IRS gives over the telephone in an average tax season??

Sorry, Misread the post. I know of no further extension. I believe your at the mercy of the correction programs after that.

http://benefitslink.com/IRS/revproc2003-72.pdf See above URL

What can a single participant (Non-ERISA) employer do if 5500 was never filed for multiple years. ( 10 yrs) This was just discovered and employer could also use a referral to a good ERISA qualified atty on the east coast.

AGI only applies if your are covered by a retirement plan at work. For 2003 the phase out limit is between $40K & $50K. For 2004 the Phase out is $45K to $55K. See Publiction 590 at IRS.gov. http://www.irs.gov/pub/irs-pdf/p590.pdf PAX, Your quicker on the trigger.

Thanks Derelict. They have finally cleared that up.

Will this help?? http://benefitsattorney.com/415.html

Merry Christmas and Happy Holidays to all and thank you Dave for a Great Job.

Check your plan document. It should have language that covers these situations.

Here are the regs with Noel Ice's annotations http://www.trustsandestates.net/MRDRegs/MR...htm#_Toc9937165

Several summaries in today's benefits link.

Gary, Check the instructions to form 8606 and the form. As I see it, the balance in a SIMPLE IRA is included in the basis calculation as are SEP balances. I believe any increase in the value of the SIMPLE would have an effect on the basis %. In order to take advantage of a loss in the IRAs of the participant, all would IRA balances, including the SIMPLE IRA have to be distributed to determine the unrecovered amounts. I agree with Fishchick in the previous post.

My understanding is that restriction on the 5305 SEP applies only to the IRS model doc but if the SARSEP is on a Prototype or individually designed doc, you may coordinate with other QPs.

I agree with Chip Brown that they would be considered non-deductible contributions subject to the appropriate penalties.

Gary, A SIMPLE IRA may not be a Traditional IRA but I believe the distribution rules for SIMPLE IRAs follow the same rules as Traditional IRAs with the exception of the two year rule. See same page 10 of PUB 560 for 2003 ( new last week ) referring to Pub 590 for SIMPLE IRA distribution rules.