K-t-F

Thank you both very much. I will pass on your knowledge to the client.

This may not be the right area since the client now has all her $ in an IRA... Its just that you guys are a wealth of knowledge... I figured you might know. I posted this post in the "IRA" area... not many replies... any thoughts.. anybody? If I am not following proper board etiquette let me know and consider me "tought"

An old pension client of mine terminated her plan and rolled the $ into her IRA. She is on disability and doesn't think she will make it to retirement age before she dies. She asked me if I knew if she could withdrawn funds from her IRA without penalty since she is disabled. I admitted that I couldnt answer that question but would see what I could find out. Is the answer dependent on the IRA?... or is there a definitive answer with regards to all IRAs? Also, is there a # to call at the IRS? Any help would be greatly appreciated!!

I have always applied for an EIN on behalf of any plan that I establish. I was told today that that is not necessary. That on the Schedule P where it asks for the Trust's EIN I would simply put in the corporate EIN.... Have I been adding a step to my plan establishing process? My feeling was that the trust needed it's own separate EIN in the event of a distribution and taxes were withheld.

I did not go to the Bisys site before I wrote that post. I have since been there. I only "ASSumed" that the quote would have included the cite and since there was a question regarding a cite I made my own apparent erroneous conclusion. Being a newcomer to actually positing here I have learned now that not everypost will include all of the information and that in some cases deeper digging may be needed.

I would conclude that deferrals should be made As-Soon-As Administrativly possible.

That is interesting.... I wonder if the thinking is that the only person to lose out on possible income (or loss) earned on the $ deferred is the plan sponsor themself. No cite though. Something to hang your hat on is always nice!

I certainly understand that the job comes first. This time of year when people are planning especially. I was simply trying to prompt someone to respond and confirm what I thought the answer was. I appreciate the ref.

I guess noone knows the definitive answer.

That works if the sponsor is a corporation... SE people will need to have compensation in the neighborhood of $147k to reach the $40k limit....

New solo 401k plan... SE individual establishing the plan... When does he (she) have to have the deferral contribution paid to the newly established trust? As-soon-as administrativly possible? Within 15 days of the year end? (Jan 15) Schedule C filers may not know exactly what they have for income before year end.

no.... This guy works on the side preparing tax returns for farmers and ranchers. He also is imployed for someone else. No relation. Thank you very much!

If someone works for themself and as an employee with a totally separate company that has a pension plan, would the 415 limit be $40k total... or could he contribute $40k for himself and say have his employer contribute $20K ? 402g limits are per individual... 415 limits the same.. or per company?

Thank you!

I have a client that is an employee in a company and he defers the max in the 401K there. He also works for himself and wants to defer another $12K... Possible?