jane123

That's what I thought at first. But there is no relationship, other than him being a w-2 employee. Thanks for all your help. No need to provide additional responses, unless you want to. I am handing this one back to the boss as she is back. J

What does Company A do? Attorney? Accountant? Widget manufacturer? Is Client now a common law employee of Company A under its new ownership? What type of services does Client perform for Company A now? Management functions, perhaps? Company A is a dentistry Yes. Client is now a commonlaw employee under A Client A does dentistry work for Company A, as an employee.

Anyone?

Thanks for the reply. slo ca cpa, If I convert from three different traditional IRAs and elect to recharacterize, may I recharacterize one or two - or must I do so to all 3? Two will be partial conversions from my wife's traditional IRAs and one from my own. Gratefully, Michael You can recharacterize one, two or even a part of any one. No need to recharacterize them all unless you want/need to. J

Makarov, I am not sure of the answer, but I know Denise knows what should be done. I will leave her a note so that when she comes in she can respond, if you have not gotten a response by then. J

I agree with dms. Sieve, would you agree that the option to treat the loan as a deemed distribution satisfies the requirements of 2550.408b-1(f)(1)?

Hello, I am checking on this for Denise, who has a better understanding of successor rules than I do, so bear with me if my question seems too basic. Question 1: Client had Company A and a Professional Association (PA). Company A had a PSP, which covered employees Company A was sold. Client now works for Company that bought Company A, and the income passes through the Professional Association. Can client terminate PSP and set up a new 401(k) for the PA? My concern is that Company A and the PA was part of a controlled group, which would mean that the PA is still the sponsor for the PSP? Not sure. Even if they are part of a controlled group, can the PSP be terminated and the 401(k) adopted? The 401(k) will have a PSP feature. Question 2 (actually my question): Regarding the Original poster’s question. If they maintained two PSPs’, isn’t that one plan for purposes of the rules- just that they are under different plan documents? And if so, wouldn’t that mean that you could not terminate one, while the other remains? Appreciate your help.

I will take that approach and let you know how it tunrs out. Thanks

The IRA has to be opened in the name of the husband since the check would be payable to his account at the bank/ mutual fund which would be acting as custodian/trustee. That is what my boss thought. But I called the bank and they said they cannot open the account in his name, because he is not able to sign the paperwork, and they are required to give the IRA disclosures . Thank you for your responses. Jane

Your assumption is correct. The check was made payable to the IRA custodian for the IRA. The participant intended to establish the IRA after receiving the check.

A participant requested a distribution from his DB pension plan and instructed the plan to pay the check to his IRA. He died before receiving the check. Also, the IRA was not yet set up. What can his wife do with the check? The plan refuses to take it back and make it payable to his wife, even though she is his beneficiary.

Thanks

Thanks-very much

Blinky- anything from the man in the bigh chair?

From IRS Publication 571.Is there any circumstances where this can be extended to 10 -years?

Plan document says effective date must be January 1. Business established October. Can we still use January 1 as effective date?

The QDRO is from 1999. I understand that a QDRO is for QRPs. Sometimes, the judges and the lawyers do not understand and issue a QDRO for IRAs and they will submit a QDRO for IRA assets. Our policy is that since it is giving us more than we need, as long as the basic requirements are met, i.e. clearly instructing how to divide the IRA and identifying the IRA by number, we will use it. But I remember reading somewhere that if a QDRO is issued for a QRP, and the assets are rolled to the IRA before the they were divided under the QDRO, the same document cannot be used for the IRA. I can’t seem to put my hands on the article or reference.

QDRO issud for QP. Assets were not not given to former spouse. Assets subsequently roleld to IRA at another financial inst. Participant wants to use QDRO to trasnfer assets from IRA to former spouse. I vaguley remember reading somewhere that you cannot use a QDRO issued for a QP for an IRA? What do you think? Thanks in advance. Jane

Employer maintains SIMPLE IRA at a financial institution. All the accounts under the SIMPLE is at the same financial institution. Employer sent in checks to financial institution along with breakdown/allocation sheet. Employer made a mistake (clerical error) and gave instructions to deposit more than the correct amount to one participant’s account, and less than the correct amount to the other participant. (One person got too much, and the other got too little). These were employer matching contributions Can the employer just send a letter to the financial institution to make the adjustment? Is this affected by the irrevocability of IRA assets?

Picture this.... I am sitting at my desk- trying to make sure I complete my daily tasks on time. My boss suddenly comes strolling down the aisle, saying something about a SIMPLE IRA. I have no idea what he is talking about. I don’t even know what an IRA is. No one else seems interested- so I figured it could not be important. I continued with my work, and didn’t even think about the matter farther. I can’t even remember the subject matter if I tried . A few years later, my boss asks me to tell the IRS that he did tell me about the SIMPLE. “What? What is a SIMPLE” I said? You mean you would have given me money (free money) if I had put money in my account? OK, I said. I will do what you ask…( 'cause I thought...after all, you conduct my review and determine if I get a raise and and and… So the IRS agent interviews me a few weeks later. Did your boss tell you about the retirement plan? No. I said. Did he not tell you about a SIMPLE IRA plan? Oh- yes he did. A few years ago he told us at our desks. What did he tell you? Ummm...he said if I had put money in, he would have given me free money. Man!!If I had known that then, I would have certainly put money in. But I did not know that he would have given me money until he reminded me a few weeks ago... Ah ha…said the agent…

Congrats on a job well done. I can't imagine life without benefitslink

We have a few qualified plans ( profit sharing and money purchase plans) established by small business owners, and we are unable to reach them or hear from them. Some for more than 2 years , some less. Can we escheat these amounts to the State? Or should we send the balance to the DOL( someone though they hears that the second option was available). Thanks very much Jane

Client contacted his broker to establish a 401(k) plan. The broker gave him an IRA adoption agreement to complete. The broker says it is his mistake. The assets have been in the traditional IRA since 2003. Now the client and the broker wants adjust all activity and assets from the IRA to the 401(k) plan. Is this a correction process that is allowed? If is there not a deadline of the next year-end( the year end after the year that the mistake was made.? Thanks for your help

Often, you can tell how much someone knows about a topic by the way they ask the question. A good example is how I asked this question- you can tell I know nothing . They are not married or otherwise related...and no ASG- I think sicne they share absolutely no resources or services . Your responses have been extremely helpful and educational. I am more enlightened and I impressed the customer – his attorney agreed with my response. Thanks a zillion guys

Facts (names changed to protect the innocent) --John owns Corporation A- 100 %- no employees ---Jim owns Corporation B- 100%- 1 employee who works more than 1,000 hours and had been with company for five years ---John and Tom owns Partnership-C- 50% each ---John established a profit sharing plan for Company A Questions. 1) Must Jim be included in the profit sharing plan established by John for company A? 2) Must the employees of Company B be included in the profit sharing plan established by John for company A? ...if yes-any exceptions? Thanks very much Jane