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FormsRstillmylife

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  1. Where are you going to find a custodian that will provide an inherited IRA without an IRA owner signature? Answer that before considering plan amendments to make this happen.
  2. So . . . . . I am being an aggressive tax attorney and no one has tried this? It seems like it fits the intention of Notice 2014-54 to allow a simple transaction instead of multiple steps to get to the same tax result, but the Notice does not say you can.
  3. A plan with Roth can have an in-plan rollover to the Roth account. Notice 2014-54 says an after-tax account can have its after-tax employee contributions sent to a Roth IRA and its pre-tax investment return sent to a traditional IRA. Participant does not want to pay income tax on his after-tax account in-plan rollover. Can a participant send after-tax employee contributions to the Plan's Roth Account and leave the investment return in the After-Tax Account under the plan? Is Notice 2014-54 insufficient relief such that the investment return has to be sent to a traditional IRA, instead of being left in the Plan? With the traditional IRA being rolled back into the Plan as a third step. Could the investment return just be rolled to the Plan's own rollover account (assuming all rights are preserved) in order to skip the IRA two-step dance? Assume an individually designed plan that can be drafted/amended in any legal manner for a qualified plan.
  4. Thank you, Paul I and Peter. I was just looking for this guidance when asked about a market value adjustment assessment. I knew I remembered it. Business acquisitions can lead to unanticipated contract terminations when the acquiror's plan does not want the Stable Value Fund. If there is not a clear enough fiduciary violation, the parties may have to consider a new comparability profit sharing allocation = participant by participant contribution for those hit by the MVA subject to average benefit testing.
  5. Upon plan termination, the PBGC will not take a missing participant account where the name is fake and the social security number is false. There was also no luck having the person whose identity was stolen to take the money. (Didn't try it, but a thought in a weak moment.) In that particular case, ICE had been called and no one thought to get the employee's real name as he was being hauled off.
  6. Does the Custodian think it can process distributions as well? It sounds like the Custodian does not have good forms/processes for handling assets that are part of a qualified plan. We have enough issues with paper forms and web designations being coordinated without having an unauthorized third party try to collect designations.
  7. SECURE 2.0 will have to be reviewed to see if this is now a self-correction. HCE failing to take taxable income for 5 years may still require filing versus TPA admitting it misapplied the law and never notified him.
  8. I am cautioning consultants about "Intern" as a classification -- anything that would look suspect if it looks like a person should move out of the category.
  9. I am not sure I would want to defend this classification exclusion when the long-term, part-time rules become effective. An employer could have a well-developed handbook policy that supported the classification, but in the absence of such, it could be construed as an attempt to avoid the new SECURE law.
  10. The affidavit could be boot strapped if the employer could say I distributed the SPD along with a beneficiary designation form. I have a stack of completed beneficiary forms.
  11. "They" are saying the auditors. Doesn't make sense to me either.
  12. 2020 5500 will be ready to timely file since the plan no longer requires an audit, but 2019 5500 with its required audit will still be unavailable. Should we file the 2020 5500 or will this make the DOL and IRS more likely to ask after the 2019? Prior years were filed timely; so the DOL has to know the plan is out here.
  13. Is it appropriate to put a limit on the number of requests from a participant that will be approved in a plan year?
  14. I think you need them to agree that a request for the remaining account balance would be honored where the balance is less than $500. Otherwise, a participant with a tiny account loses the right he had yesterday to take a distribution. That gets them out of the checking account business and let's them do a once and done -- may need to agree to add a once a year restriction.
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