jane123

403(b) custodian document defines a “participant” as someone who is currently employed by the employer and says that a “participant” may take a loan from the 403(b). Does this exclude former employees from taking a loan from the 403(b)? I know that some 403(b)s allow former employees to take loans . Thanks in advance for your help.

From what I understand, if someone has a 403(b) account and also is a participant in a defined contribution plan, the 415 limits apply separately. Which means the total to both could be $82,000 ( $41,000 to each). But what if the 403(b) owner owns a business and has a plan for the business, is the rule the same? Or is it only one limit of $41,000 total to both plans because it is a controlled group? Thanks very much in advance. Jane

I am not Blinky, but I am sure he/she will agree that you did not come across as snide. You came across as someone who could be confident/cocky if you wanted to since you are apparently knowledgeable, but instead you choose to be humble by asking for an opinion on your interpretation.

Can rental income be used as 'earned income' from self-employment to establish a retirment plan for a sole proprietorship? Thanks Jane

CAn Rental income be used as 'earned income' for a sole proprietir to establish and contribute to a SEP? Thanks Jane

Pershing LLC (www.pershing.com) allows IRAs to be established for minors. In fact, they allow SEPS, SIMPLES and QRP accounts to be established for a minor child, providing the account is established as a “guardian” account, with the parent or legal guardian handling the investment direction and any other transaction that requires authorization from the account owner. Account subject to the same investment and other rules as other IRAs You have to use one of the Broker-dealers who clears through them The time stamp on this board is wrong. Right now it is 3.30 pm. But the time stamp will say differnt

Aww guys!! I really don’t want to stretch this out any further…but… I think we all enjoy posting here and helping each other….and I can see Kirk’s point of view. Most of us know Kirk by reputation- heck, the IRS and other respected professionals (in reference books I might add) refers to one of his letters as “ The Kirk Maldonado letter”...or "the Maldonado Letter"), . You don’t want to take chances with a reputation like that…also, being cautious helps the poster and the rest of us to analyze the question ---also, in most cases, other facts of which were not posted could change responses well…maybe not in this particular post. Most of us use an alias---so even if we are wrong, it may never affect our reputation anywhere other than this board. But when everyone in the pension field knows who you are, and your reputation is important to what you do, you must be cautious. Pax, Belgarath, I love you too. PensionNewbee, you seem nice, but you are a newbee so I don’t know you well enough yet … I think I will like you when I get to know you better Now can we all just get along?

My partner usually helps me with these things, but she will be out for awhile and the customer is antsy. Any help will be greatly appreciated. QTIP trust is beneficiary of IRA. The trustee wants to transfer the assets from the inherited IRA in the name of the QTIP trust to an inherited IRA for a Marital trust. Is this allowed? If not, can you please tell me why?

How about discrimination in general- who will be penalized- the married or the unmarried? Assume the contribution formula favors the married, what is the message you are sending to the unmarried? You must get married to receive a higher contribution amount? Ridiculous!!!

Ok. I will delete this post- I don't want to waste anyone's time. jane

The account is a non-ERISA 403(b)(7). The participant is deceased, and there is a outstanding loan balance. For qualified plans, we require instructions from the plan administrator confirming the outstanding loan balance, and whether it is an offset of deemed-distribution. But there is no plan administrator for the 403(b)(7) ---. How do we determine the outstanding balance and the status of the loan? Who do we get confirmation from? Thanks in advance Jane

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Is anyone familiar with or have any comments about the courses offered by Infre (http://www.infre.org/) ? Good? Not good? Recommended? Thanks in advance Jane

http://www.workindex.com/editorial/train/trn0208-02.asp

I have the same issue as the original post for a sole proprietor has anything changed? Thanks in advance Jane

Thanks for all the responses. To answer some of your questions It is a 401(k) plan. It includes after-tax (non-deductible) contributions. It is not a loan. The plan does not include rollover money. The participant has satisfied the requirements for receiving distributions from the plan. He wants to withdraw only $7,000, but he does not want to pay tax on the amount, so he is asking that the $7,000 be distributed only from his balance attributed to the after-tax balance. He has no pre-1987 balance. Does anyone have a copy of Notice 87-13 that could be uploaded here? Thanks for all your help. Jane

Hi Pax, Mary Kay responded to my other post under distributions from retirement plans (sometimes if it is urgent I post on more than one board in the hope of getting a quick response). By partial distribution I mean a distribution off only part of the account balance, as opposed to taking a distribution of the full balance. Thanks again Jane

Thanks Mary. By Partial distribution I mean distributing only part of the balance, as opposed to taking a total distribution. It’s kinds of an in-house term, once you get used to them you forget they are not used industry wide – sorry about that. Jane

A plan includes both pre-tax and after-tax assets. The participant receives a partial distribution from the plan. How is the distribution taxed? Must the distribution amount be determined on a pro-rata basis, similar to IRAs? Thanks in advance Jane

A plan includes both pre-tax and after-tax assets. The participant receives a partial distribution from the plan. How is the distribution taxed? Must the distribution amount be determined on a pro-rata basis, similar to IRAs? Thanks in advance Jane

Thanks Bob

What is partnership income for purposes of determining compensation for making an employer SIMPLE IRA contribution? Is if the amount reported on the k-1 or must the k-1 amount be reduced by expenses deducted on the partner’s tax return in order to determine compensation.

What is partnership income for purposes of determining compensation for making an employer SIMPLE IRA contribution? Is if the amount reported on the k-1 or must the k-1 amount be reduced by expenses deducted on the partner’s tax return in order to determine compensation. Also posting on SIMPLE board

I know you can’t designate your will as your beneficiary. But what if you designate the trustee of your will… is that the same as designating your will as your beneficiary? Also, given that you can’t designate your will, doe sit mean that is you did put your will on the document, you really do not have a beneficiary designation and the IRA agreement provisions must apply? Thanks in advance.

I read in the Aspen panel publishers on-line reference service that if employer stocks are rolled over between two plans, then the basis is “stepped up” to the total value of the assets when they are distributed from the first plan. I also read in a PLR on EBIAs website that the basis remains the same if the rollover is between plans of the same employer. This PLR caused me to think that the Aspen article refers to plans of different employers. Your thoughts. Thanks in advance for your help Jane