K-t-F

I was asked.... if a client missed a RMD back in 2005 and the 50% penalty tax was paid.... does he still have to take the 2005 RMD in 2006 in addition to the 2006 RMD? it was suggested to me that... "hey, he missed it, he paid the penalty so the only RMD needed to be withdrawn in 2006 would be the 2006 RMD. Thoughts? Thanks

Can someone provide me a cite that will convince a new client that he can deduct the contribution for 2006 eventhouugh the contribution is paid in 2007?

Can someone explain to me the same desk rule... Thank you

that's what I was told... Thanks

I dont have too many specifics but was asked this question.... in general... If one company is merged/purchased with/by another company and the plans are merged... I was told no but, do the participants of the plan being merged into the purchasing company plan have the option to take a distribution instead of just rolling their balance into the new plan? I ask because a question came up that maybe the investment choices in the new plan are not desired by the participants of the plan being merged. Thanks

Is the ability to only make SH contributions to the NHCEs something that must be stated in the doc.... or is it simply a rule that exists?

Or sign the 5500 or schedule P.

Why am I so inept at searching this board for simple answers? Can a participant make a Roth IRA contribution and also participate in a QP in the same year? Thanks!

client will be 70.5 in January 2007. He has a plan himself but also works for a totally different company. We will take the RMD from his plan no later than 4/1/2008 but since he is not an owner of the company sponsoring the other plan and is still actively employed he is not required to take a RMD from that plan.... correct? also, His plan is a MP... other plan is a 401K. Any faults in my reasoning pointed out or observations appreciated! Thanks

I ran into this problem and contacted the payroll company who subscribed to one of these services. They found the person. I figured they might use one of these services ..... and they do. Just a suggestion.

Client is completing an application to invest in a new asset. He is a single person plan investing in a limited partnership. One of the questions is below. How would he answer the question without being too vague (i.e. investor is a qualified retirement plan) "If the investor is exempt from US Federal Income Tax, please indicate the basis for the exemption:" Thanks!

hmmm... this was supplied to me with regards to investing in Real Estate. http://www.irs.gov/irm/part4/ch50s11.html#d0e500995 I have not read it through yet...

That is the scheme... the plan is going to be the sole holder of the mortgage. It is a true investment. I told the financial advisor to inform the trustee that his sister's husband's nephew can not live there. They understand. The plan will obtain the mortgage and the mortgage will be paid from rental income. I have never heard of a plan taking out a mortgage on any type of RE. Thanks... any other thoughts would be appreciated!

I have always swayed people away from investing in RE. Here is the plan... Invest $100K of plan $ in rental properties AND use the plan as collateral for a loan to purchase the balance of the property. Or that is what I think their plan is. I have searched for more specific posts but none address the second part which is to use the plan as collateral for the mortgage. Thanks!

lol... nothing funny... I was EXTREMELY tired and couldnt think! I think I am a little punchy now. Both single person LLCs, they just want to only have one plan for simplicity sake.

Husband and wife each have an LLC... can they have one plan between them? Why wouldnt they be able to?

That was my understanding... as long as the 2 companies are totall separate and neither husband or wife has anything to do with the other... no income for the whole year. These 2 are fine with not being a part of each other... want to do it right.. crossing all the "T"s and dotting all the "i"s As for otherwise excludables... I am not sure what the hire dates of the agency EEs are. I am guessing that they would have the 1000 hrs and 1 year. Thanks for your comments.

Agency EEs need to be covered even if they are terminated early in the year? Wife will have no involvement until Agency is gone. Thanks!

Husband is a self employed consultant... no EEs Wife owns travel agency. 4-6 EEs Wife is closing business before the end of the year... but may drag on into 2007. Can husband open a Solo 401K and defer himself. Wife will work for Hub but will not defer until 2007. Any problems here? Thanks!

What news letters, subscriptions are people using to keep on top of pension issues? Thanks!

Ahhh.. thanks Austin... just a simple confirmation made me feel THAT mutch better. I have been looking at the EZ instructions... I will look at the 5500 instructions. Thanks!

I think I am thinking too much today.... In another area I asked the question... controlled group? Now I think I have the answer but have this question... Here are the specifics: Company A ... son and wife 50/50 owners Company B ... son, wife, mom, and dad 25/25/25/25 owners From my research (hope I am getting it correct) this is not a controlled group. And since it is not a controlled group can the son and wife both participate in both plans? 2 separate 415 limits? To delve deeper... Company A would establish a plan and since it would be a husband and wife business there would not be a 5500 requirement. But, if Company B was to also establish a plan would we still be able to file an EZ?... 4 partners/owners? No 5500 requirement? Is there a catch I am missing? Thanks!

ping..... I missed this... If son is concluded to own 100% of company A by attribution (ownes wifes shares) and at the same time ownes 100% of company B by attribution (ownes mom's, dad's and wife's) then indeed it is a controlled group... Anyone? ahh... after further research... (and some help) the son doesnt own his parents share because he doesnt own more than 50% of company B... so Son 100% of company A and 50% of company B... no controlled group Am I talking to myself?

Here is the scoop... Company A : son & wife 50/50 Company B : mom, dad, son wife 25/25/25/25 Control group? I didnt think so... thanks! I now have more info...... Company A... Buys land and develops it. Sells lots to builders Company B... Purchases lots from A exclusively Builds houses and sells them Profit is split among the 4 owners (mom, dad, son, wife) Now, a CG? ASG? Bottom line, Can there be one plan? Can there be 2 plans with 2 415 limits? If one plan and company A sponsors it, would mom and dad be EEs of A or owners? If owners, then can we file 5500EZ?

A participant has a Simple IRA, a traditional IRA, and a Rollover IRA. He wants to roll them into a qualified plan and have them be considered "Roth" contributions. He from that point forward wants to make Roth contributions to the plan. Can these IRAs be rolled into the plan and be considered Roth? Will he have to pay any penalties? (to convert to Roth) Thanks