ombskid

To make that a bit clearer: If 12k accrued benefit is 100% of pay, but considerably less than the current dollar limit does lump sum get calculated using lesser of 415 rates or plan rates, or just plan rates?

US citizen lives in the UK and has earned income there. We know that her income is also taxed in the US, with a credit for the UK taxes. If she has a UK pension (or profit sharing) plan, is that deductible in the US? I guess the question is when completing the Sch C in the US is the pension contribution in the UK deductible in the US calculation/Sch C?

I haven't been doing FSA plans for quite a while. I think that unspent FSA deductions used to revert to the employer, who had a couple options of returning it to the plan, but didn't have to. Can employers now "keep" unspent FSA funds?

The original $100 per former participant was less than the actual cost of the plan per participant - including tpa fees, ERISA bond, fiduciaty liability insurance - all documented costs. So the sponsor was charging formers less than the amount it was paying for current employees. If the new amount - whatever it is - is not more than the cost per participant, then there should be no problem, correct?

For several years we have used fees to former participants to get them to move their assets - rollover or whatever. We used a nominal $100/yr - hoping that would be enough to get them to move. We're finding it often is not working - they get a letter each year, they do nothing, and we remove the $100 to cover some employer costs. Does anybody know if there is any guidance on how much is allowable. One employer wants to up the charge to $250 - still just to get them to move.

Plan allows early retirement at 60. At 61 he took the bulk of his lumpsum, but not all. Made one more contribution (no increase in accrued benefit) then took the balance.

What about a sole proprietor one person plan who takes a year and a half to finish funding and distribute the balance but accrues no additional benefit

Can a participant in a db plan take a partial distribution at the plan's early retirement age and continue to work and accrue a benefir?

Sole proprietor retiring at 62 with an accrued benefit approx $12k a month. Is his lump sum calculated with plan or 417e rates, rather than 415 rates because his benefit is not at the 415 maximum?

Mike that sounds like a good idea. Instead of me trying to find a way to tell them it isn't taxable, it forces them to show it.. Thanks

I thought any gain inside a qualified plan trust was exempt from any state tax.

Client has a single employee profit sharing plan. The plan invested in some houses in CA, and sold them at a profit. Is that subject to UBT? The escrow firm in the transaction made a mistake on the 1099 for the gain, and it triggered an audit. Now CA wants to tax them on the gain, and is not accepting that the gain is in a qualified plan. Anybody ever heard of this?

Thanks David

Can you file your 1040 early i.e. before 4/15 and still have until 4/15 to fund your IRA?

Move up the food chain is the answer. After politely (mostly) explaining to several layers that this is not an individual brokerage account but a trust separate from the trustees who have the power to control it, it got easier. There were no rules that we needed to find a way around. The financial institution needed to be reminded that their position was to operate at the pleasure of the trustee. And the surviving trustee had all the status he/she needed. The receiving institution had already jumped through many hoops but got nothing from the existing brokerage. In the end I don’t think they were just trying to hold onto assets (my cynical thought along the way), they just have too many layers of bureaucracy – sounds like our government. I’m real happy to have brought this to this group. I needed some confidence that I wasn’t out in left field thinking this just should be done. As is often the case, a little discussion backs up the right answer (which isn’t always my answer)

One trustee of a ps plan died. The spouse, who is the other trustee, wishes to move the plan assets to another investment group. Brokerage (the back office) says they have to segregate the deceased's assets into a new account. We say it is none of their business, if trustee wants to move the whole trust, he/she has the right. There are other participants in this pooled, balance forward plan. Plan allows one trustee to act for both (not that there is a "both" anymore) Ever heard of this? see any reason/grounds they would have for forcing this instead of moving the assets as directed?

Never ran into this. LLC is "taxed like a sub s". Some income is taken as w-2 the rest goes on a k1. In a sub s, we cannot use any sub s "pass through" as compensation. Is that true with a LLC taxed like a sub s?

Client owned a corp for many years. Recently sold it. Formed LLC. Wants to maximize deductible contributions Can hi 3 average salary for years of the previous company be used as comp in a new DB plan?

US citizen moving to UK. Will keep US citizenship. Will have Sch C type income in UK, subject to US income tax. Can she have a qualified plan in the US for that income?

Participant still working. Not a 5% owner. Turns 701/2 in December. No current required beginning date for 401(k) because still working. He has 2 IRA's. If plan allows, can he roll them into the 401(k) and delay the required beginning date for them?

No. But is a Key EE automatically an HCE?

Agreed that it is odd, but that is the case. I actually think it's ok, just so unusual, at least for me, I'm looking for something I didn't think of.

New plan for new company has 5 participants. Immediate eligibility for all. Profit sharing contribution is new comp, by group, each employee is a separate group. At least 4 of 5 are participating in 401(k). Match discretionary to be determined at year end. The first year all will be NHCE. Can a discretionary profit sharing contribution be made for only one NHCE?

We have 2 clients who received late filing penalties in January. We sent copies of the 5558 filed timely. Yesterday both clients received the CP 220 notice stating changes were made to the 2012 5500, and a new penalty bill. Now I'm wondering if anyone who got these in January has any insight into what they are about and maybe what they did.

Rather than 4.25% I mean prime rate plus 1%