jane123

If an individual files his return on a fiscal year- say June to May, does he have until September 15 to make his 2004 IRA contribution? Thanks in advance (Also posted on the IRA section- )

If an individual files his return on a fiscal year- say June to May, does he have until September 15 to make his 2004 IRA contribution? Thanks in advance

Should amounts returned to the employer due to a 'mistake of fact' be reported on Form 1099-R? Thanks in advance

Instructions are to give spouse IRA under IRC 1040, which talks about pecuniary bequest. Does this mean that the spouse gets the assets now? Or after the IRA owner dies? This is different from a non-taxable transfer due to divorce -right?

Thanks. He is establishing the 401(k) his own self-employment business. So we will tell him to combine the 403(b) and the 401(k) for the $42,000 limit. We were not sure, because we though the nonelective could apply to a previous year, sicne it was based on previous year's income ( after separation from service)...and as I am typing that I realize how silly it sounds. Thanks a lot

A client received a nonelective contribution to her 403(b) account for this year. However, she is no longer working for the employer- she received no compensation from the employer for this year, and the contribution is based on past year’s services. Does this contribution affect her $42,000 limit for this year sicne it is based on past year's service ? She wants to do Solo 401(k) for this year . Thanks in advance Jane

I know an inherited IRA for a non-spouse beneficiary must be maintained in the deceased's name. Does this rule apply for inherited 401(k) and qualified plan assets? Thanks

Participant’s balance is $20,000 Participant receive loan of $10,000 on the last 30 days. Balance in account is now $20,000, with loan balance of $10,000 included in the $20,000 balance. Participant now wants an in-service withdrawal of $10,000, leaving only $10,000 loan in account. Is this permissible? Thanks very much

It was an RMD. The extra amount would cause the distribution to be a little more than the RMD. They were thinking of rolling over the extra amount, but I do not think they can do that , as there is no one to sign the rollover request form. I came across a situation like yours as well. The RMD went up the year after the year of death- the beneficiary was the uncle (older) of the deceased

Demo, your assumptions are right. Thank you both very much. Very helpful information Jane

An IRA owner had systematic distribution on a monthly basis from his IRA. he died in September 2004, but the distributions continued. The Bank was never notified of his death until Last week (February 2005). Now the beneficiary wants us to change the reporting and issue the 1099-R for the September, October, November and December distributions in the name and TIN of the beneficiary (and the name of the deceased- like an inherited IRA). The Bank is saying they cannot do that, because the beneficiary did not request a the distributions, and that the beneficiary should have their tax person handling any correction on the tax returns. Is the Bank required to fix the reporting? Thanks very much for your help. Jane PS. Also posted in Distributions Forum.

An IRA owner had systematic distribution on a monthly basis from his IRA. he died in September 2004, but the distributions continued. The Bank was never notified of his death until Last week (February 2005). Now the beneficiary wants us to change the reporting and issue the 1099-R for the September, October, November and December distributions in the name and TIN of the beneficiary (and the name of the deceased- like an inherited IRA). The Bank is saying they cannot do that, because the beneficiary did not request a the distributions, and that the beneficiary should have their tax person handling any correction on the tax returns. Is the Bank required to fix the reporting? Thanks very much for your help. Jane

Thanks guys

Please help -I am trying to determine if this participant can take a second loan Vested balance in November $55,000 New loan in November $25,000 No loan payments have been made yet. Balance in January is $30,000 + loan of $25,000 Participant wants to take second loan We do not use the $10,000 limit, where you can exceed the 50 percent if the loan amount will be $10,000 My calculation says no second loan allowed. I used the following formula Participant may borrow the lesser of A or B. A = $50,000 – Highest Outstanding Balance (HOB) B = (.5 x vested balance(VB) - Outstanding Balance (OB) A= $50,000- $25,000 + $25,000 B= (.5 x $30,000) - $25,000 $15,000-$25,000 = -$10,000 This suggests that the participant is not allowed to take an additional loan. Here is my question, should VB be $30,000, or should it be $55,000 (where $55,000 includes the outstanding loan balance). Please help!! Thanks

Please help me with the following. It is kind of related to the above question, but a little different Individual is age 80, still working. In early 2004 she rollovers a withdrawal from the plan to her IRA. Individual decides to retire in December, so her RBD is April 1, 2005. Does the rollover include her RMD being that it was the first distribution for the year ? or does she get a brake because she did not know she was going to retire? Thanks and happy holidays to all

Loans cannot be repaid in a balloon repayment insteady of being amortized and not less than quarterly- true. But what about the following scenario. Participant borrowed $10,000. Wants to repay loan in one lump-sum payment at the first quarter ( within 90-days) according to amortization schedule. Is there anything that says a loan cannot be less than for a certain period? I could not find anything in the code that would suggest that this is wrong. Any help is greatly appreciated. Thanks Jane

Thanks for the answers. WDIK, sorry for any confusion by my heading. I actually wanted to now if a business owner is eligible to adopt an individual-k or Solo 401(k) if the individual’s son will be an eligible participant in the plan. The son is over age 21 and works for more than 1,000 hours per year. From what I understand, the Solo 401 (k) cannot be adopted by the employer, if any one other than the business owner is eligible to participate in the plan. So is the son considered a business owner? Or does the term business owner limit to include the business owner and spouse? wmyer's anser seem to say yes, the employer can adopt the sole 401(k) if the son is eligible to participate? But I want to be sure as my post seemd to be unclear

Individual-k plans are not subject to non-discrimination testing because the plans cover only the business owners. Could it be argued that if the plan could also cover the children of the business owner and still not be subject to the non-discrimination testing? Thanks in advance for your help. Jane

I understand after-tax amounts can be rolled to a 401(a) plan is the plan separately accounts for the assets. Can after-tax amount from a 401(a) plan be rolled over to a 403(b)? If so, what is the plan does not separately account for the after-tax assets? Thanks in advance

Good point- Both are C- corporations Thanks Jane

Sort of different question- I really hope you can help. What if two sisters have ownership in two businesses. 1 owns 100 % of business A and 40 percent of Business B (let’s her Jane) The other owns 40 % of business B, lets call her Daisy. Can Jane participate in the plans for both Company A and Company B? Does the employees of Company B have to participate in the plan adopted by Company A? Can Daisy participate in the plan for both companies and receive $41,000 in contribution to each? Thanks very much

She is now age 36. Thanks Jane

A beneficiary under a profit sharing plan elected to receive distributions over her life expectancy. She has taken distributions over her life expectancy for several years, but now she want to distribute the remaining balance this year, instead of continuing the life expectancy payments. Can she? or is she mandated to continue distributions by taking no more than the minimum amount each year. Can the plan require that she distribute no more than the minimum amount

Is this article correct? http://www.foxnews.com/story/0,2933,125994,00.html I always thought different and I think I read different on this board and some reference material- in that the conversion would have to include some of the after-tax and some of the pre-tax Part of what she says is

Divorce decree awards wife 50% of IRA assets to wife. Husband refuses to sign instructions to transfer assets to wife’s IRA. Is husband’s signature required? Or can wife sign instructions? We need signature for instructions on how to breakdown the sharing of the assets . Thanks in advance for your assistance