jane123

Thanks MGB and jashendo Great and helpful info

What is the maximum salary deferral limit to a 401(k) plan? I am being told that if a plan allows for after-tax contributions, the salary deferral amount can be more than $12,000. I though that the deferral was capped at $12,000 ( for age under 50), regardless of whether the amount is pre-tax or post-tax. Thanks in advance for your help. Jane

If an individual completes a rollover of employer stocks from one qualified plan to another qualified plan of a different employer, how does that affect the NUA? I read somewhere that this can be done for plans belonging to the same employer and the NUA is not lost then. But I cannot find anything about rolling the assets between different employer’s plans. Thanks in advance

Are there any circumstances that would allow the IRA owner to pay the UBTI tax out of poket/ In other words, must this payment to the IRS always be take from the IRA? Question # 2. What happens if the IRA transferred out before the payment was deducted from the account or if the IRA does not have sufficient balance to pay the tax? PS. Same question duplicated on SEP board- just want to make sure I cover the bases http://www.benefitslink.com/boards/index.php?showtopic=21107 Thanks in advance for your help

Are there any circumstances that would allow the SIMPLE IRA owner to pau the UBTI tax out of poket/ In other words, must this payment to the IRS always be take from the IRA? Question # 2. What happens if the IRA transferred out before the payment was deducted from the account or if the IRA does not have sufficient balance to pay the tax?

One partner wants the partnership to establish the plan, but exclude all partners , except himself, from participating.

It is mandatory that all partners participate in the plan- including silent partners? Not addressing salary deferral, I know this is optional Thanks

It is mandatory that all partners participate in the plan- including silent partners?

This seems to suggest that death triggers an offset QUOTE (yvonne001 @ Feb 21 2003, 06:33 PM) Quoted from this thread <a href='http://www.benefitslink.com/boards/index.php?act=ST&f=17&t=18623&hl=loan,and,death,and,deemed'>http://www.benefitslink.com/boards/index.p...eath,and,deemed</a> Any comments- I have a similar issue- except that the loan is in default

Thank you

An individual IRA owner received a divorce decree from the court. It did not address the IRA assets. Some years later ( maybe 3) the IRA owner and his wife signed an agreement to split the IRA assets. They both signed the agreement. But it was not approved by the court/judge. Is this a proper divorce decree under 408(d)(6)? Thanks in advance

Carol ( I welcome responses from others too), I just want to be clear on this matter. By “transfer” do you mean a non-reportable transaction? I think it would be a direct rollover ( reportable but not taxable transaction). Also, are you saying that the 403(b) participant can move the money to the defined benefit plan without experiencing a triggering event? If so, how is this affected by the 403(b) document it is does not provide for such a transaction?

Very grateful WDIK Thank you

I am reviving this thread because I have a similar question. Scenario ABC Inc is the prototype sponsor XYZ Inc in the employer who adopted the profit sharing plan sponsored by ABC Inc. Questions: Whose ID number must be input in question 2a of schedule P? Whose EIN must be input in question 5 of Schedule P Thanks in advance for your help

Thanks Derelict.... you and I posted at the same time

Harwood. I edited. It should be 1.408-8, not 1.408-R Thanks for your help. I get the impression that the customer is somehow confusing trust laws with the CUstomer's responsibility for tax reporting Jane

I have an issue where the IRA holder named a trust as the beneficiary of the IRA. Form my understanding of the final RMD regs, specifically treas 1.408-8 Q&A 5, this designation cannot be passed on to the underlying beneficiaries of the trust. This means that all post death distributions must be reported under the name and tax ID number of the trust beneficiary. The trustee may then pay the funds to the underlying beneficiaries of the trust. However, I am being challenged. I am being told by the trustee of the trust that the effect that the underlying beneficiaries of the trust can be treated as the direct beneficiary of the IRA, and not just for purposes of calculating RMDs as provided in the regs, but that we should ignore the trust altogether and treat the underlying beneficiaries of the trust as if they were the direct designated beneficiaries ( i.e. , instead of naming the trust, the IRA Holder named the individuals as the beneficiaries) What is the right approach or permissible allowances. Thanks for your help.

I have an issue where the IRA holder named a trust as the beneficiary of the IRA. Form my understanding of the final RMD regs, specifically treas 1.408-8 Q&A 5, this designation cannot be passed on to the underlying beneficiaries of the trust. This means that all post death distributions must be reported under the name and tax ID number of the trust beneficiary. The trustee may then pay the funds to the underlying beneficiaries of the trust. However, I am being challenged. I am being told by the trustee of the trust that the effect that the underlying beneficiaries of the trust can be treated as the direct beneficiary of the IRA, and not just for purposes of calculating RMDs as provided in the regs, but that we should ignore the trust altogether and treat the underlying beneficiaries of the trust as if they were the direct designated beneficiaries ( i.e. , instead of naming the trust, the IRA Holder named the individuals as the beneficiaries) What is the right approach or permissible allowances. Thanks for your help.

Posted same question on Distributions from Retirement Plans Customer wants to use rate higher than IRS rate ( He says 2002-62 is only a guideline). If he insists, can we do his calculation using the higher rate? Is it our responsibility to tell him no or warn him ? We are the Bank Trustee of his IRA. Thanks in advance for your help

Customer wants to use rate higher than IRS rate ( He says 2002-62 is only a guideline). If he insists, can we do his calculation using the higher rate? Is it our responsibility to tell him no or warn him ? We are the Bank Trustee of his IRA. Thanks in advance for your help

Pax Wouldn’t the distribution be made to ( and therefore reportable for, i.e. in the name and tax ID number of) the designated beneficiary regardless of incapacity? If not, why?

benefitsguy, I don't know if you are serious or not ( I hope not, since we are all just trying to help), but you made me laugh...

I notice that the IP address appears only on some forums. For instnace, it appears on IRAs, but not on SEPs and SIMPLEs. How can I prevent my IP address from being shown on my posts?

Must an employer report SEP contributions to the IRS ( not salary deferral contributons). How does the employer explain the discrepancy that arise when the custodian reports a SEP contribution received in 2003 for 2002 and is reported on the 5498 for 2002?

Hi Patrick, I had a similar situation a few weeks ago The loan must be treated like any other loan that is in defualt. The PAs failure to withhold payments does not excuse the particiant frrom repaying the loan. He/she received pay slips and is able to tell if payments were bing deducted. If they were not, thne he/she could have corrections made or send in the payments Hope this helps. jane