BG5150

And, if anything, it is a revenue GAIN for the IRS (using forfs for SH, QNEC), as Employers deduct less.

The software we use to prepare the 5330 will not accept cents. When I put in 3 bucks as the amount in questions, it shows zero tax. I know this doesn't necessarily mean that there is no tax due. But 23 cents? C'mon.

This doesn't sound like a mistake of fact, but merely a mistake. I would correct the accounts, adjusting for earnings, and placing the funds in the plan's suspense account to be used to offset future contributions. Note, these are not forfeitures, so they cannot be used to pay plan expenses.

The instructions say to give someone an Entry Code of "D" if they have been paid out or if their balances have been transferred to another plan. Also, it says to "d"elete someone if they have begun to receive benefits from the plan. I have two questions: 1. Would this include someone who is taking RMDs from a 401(k) plan? 2. Would this include someone who had a $50,000 balance and merely took a $15,000 partial distribution from a 401(k) plan? On a side note: I also see that you are supposed to put the person's name on the form "exactly as it appears on the participant's social security card." How are we to know? I have plenty of participants with the name of Timmy O'Brien or Peggy Swanson. Is that really a big deal?

I came up with (what I thought was) a good example. Say you take a loan for $10,000. You go to the bank with the check, and cash it for singles, just to see what 10,000 bills look like. You don't spend it on anything, just look at it, maybe take pictures with it, or whatever. Then, a day or two later, you put it back in the bank, and write a check to pay off the loan for $10,100. So, now, you have only used $100 of your money (after-tax money). At the end of the day, you have only been taxed already on that interest payment. Therefore, the principal payment is NOT taxed twice.

FWIW, Relius Administration uses 3% as its threshold before it issues a warning that the formula might be discriminatory.

Buy a stamp.

I have a followup question: When prorating, is it any part of the month counts? Full month? Fifteen (15) days? Relius Administration seems to round up and down around the 15th. For example, if the last day is August 9th, then the proration is 7/12. But if it's August 18 then, then it's 8/12. The reg (1.401(a)17-1(b)(3)(iii)) just says "months."

Doesn't the IRS have a minimum number of letters that need to be sent? Like 50? Or 75? Plus, you never know if the letter got to the intended person or not. You are not appraised to undeliverable pieces. Not are you appraised of what address they have for the people.

Offense 1: warning Offense 2: 1 week ban Offense 3: 1 month ban Offense 4: Permanent ban

Start one (1) thread for people looking for co-authors. Who cares if it stays atop the "New Posts" list? As long as there's only one of them...

On paying back the loan: If he pays back the entire amount now, he is locked out of a loan for a year, but will have the full $50,000 available then. However, if he repays it according to the schedule, in TWO years from now, his loan availability will only be about $10,000 (he'll have $40,000 outstanding a year from now). Just something to consider.

If it's positive income on the way back in, it's probably negative income on the way out. (That's if the income line is where it was supposed to go in the first place.)

I think the '08 material is still valid

That is more data verification than testing. For calendar year plans, I can just look at my data to see if anyone went over 402(g). And some (usually) simple spreadsheet calculations will show me if the match is off. Although, you can run the data through the ADP/ACP testing program to catch failures easier.

I always did: Lesser of Test 1: 50,000 - highest outstanding loan balance in past 12 mos* Test 2: 1/2 vested account balance (including outstanding loan at time of calculation)** - outstanding loan balance *--in OP, if 10,000 is current outstanding balance and the loan has been in place for some time, the highest balance in the past year is bound to be higher **--capped at 50,000

And none of them have an account balance (from TH or SH)?

That was my initial thought: "All the safe harbor reasons as of today, plus any more they throw at us in the future."

The checks should have a bank name and account number on them. Contact the bank.

I wouldn't say that 0x is wrong, although it's not the way we usually expect to see it. It's like having 12 apples from which you take 12 apples, so you are left with 0 apples. Of course, having zero apples is about the same as having zero solar systems or zero x's. They all equal 0. But in this case, "x" isn't a label such as inches or apples or solar systems. It ostensibly stands for an unknown quantity. In the case of the original problem, "x" is undefined.

Could you do no P/S but make a QNEC? Usually there is a last day rule for that. However, this year's contribution would be 100% vested.

All he needed was to have some links to a wedding dress site.

Is it a traditional IRA (as opposed to a conduit IRA)? If so, does the plan allow for rollovers in of traditional IRAs?

I didn't think the match could go higher as the deferrals went up, just lower. I've been wrong before.

I have a deceased participant whose beneficiary is not a US citizen, nor does she (the beneficiary) have a US taxpayer id. How do I go about paying her out? Do we have her fill out a W-8BEN along with the regular plan paperwork and that's it? Do I have to do some research on the tax treaty between US & Poland?