J Simmons

Ex-spouse was awarded by QDRO part of employee's 401k benefits. The plan was for spouse to pay the income tax and with the rest, buy the employee out of his portion of their equity in their house. After the QDRO was reviewed and found proper, a "tax advisor" told the ex-spouse to elect to rollover the awarded benefits to an IRA. The ex-spouse did so, only to later learn that to take the money out of the IRA, she'll face a 10% early withdrawal penalty on top of the income tax. The rollover to the IRA took place 40 days ago. I've been contacted by the divorce attorney for the ex-spouse, in hopes of being able to remedy this and avoid the 10% early withdrawal penalty. I do not know if it would work, but since it has been less than 60 days, can the ex-spouse cause her IRA custodian to return the funds to the 401k trust, and then take a payout of the awarded benefits directly from the 401k plan and avoid the 10% early withdrawal penalty? Any other suggestions?

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I am looking for a document-only provider that uses ASC prototypes. Please contact me at johnsimmonslaw@gmail.com if you are such a provider or know of one. Thank you

"Bueller? Bueller? Bueller?"

Situation: H had an IRA. H died. W survived. She did not rename the IRA into her name as owner. She did not take any MRDs, even for those years she had reached and passed her RBD. W dies. The IRA balance is moved into an "estate account." Then, W dies. Her executor has the funds in the IRA moved to an "estate account" and then, 1/5th each transferred to five new "inherited IRAs", one each for the five children. How do we resolve the failure by W to take MRDs? Were the funds taxable when transferred from the IRA to the estate account (since estates per se cannot be IRA owners)?

I'm looking for contact info for the plan administrator(s) of Fedex portable pension, Fedex pension and Fedex 401k, specifically for QDRO purposes. Any info would be helpful.

What amendments, if any, in the current remedial amendment period are needed before terminating a plan?

Pathology practice LLC owned by 4 doctors, had 12 other (NHCE) employees, operated a lab and sponsored a 401k safe harbor, cross-tested plan. Effective 5.1.2024, the practice LLC sold its business to Hospital, which employed all 12 staff people that had worked for practice LLC. The doctors remain employed by the practice LLC, which contracts their services to Hospital. I have little to no doubt that the practice LLC/doctors meet the IRS definition of 'hospital-based physicians'. One of the doctors bought 1 share of Hospital. So, there is likewise no doubt that an affiliated service group now exists. Hospital sponsors a plan that now benefits the 12 staff employees. It provides a 5%-of-pay profit sharing contribution to all Hospital employees, and sports a 401k safe harbor feature with a safe harbor match. Here are some of my questions: 1-The practice LLC's plan can aggregate/is aggregated with the Hospital plan, right? 2-That permits the doctors to make 401k deferrals to the practice LLC's plan, to the 402g maximums, right? 3-Can the practice LLC make cross-tested profit sharing contributions to its plan for the doctors, since the employees of Hospital are receiving an amount from Hospital that serves as a gateway minimum? 4-For 2024, can the practice LLC plan compute profit sharing contributions and apply nondiscrimination rules just to the period of 1.1.2024-4.30.2024 for the 12 employees AND THE DOCTORS?

Pathology practice LLC owned by 4 doctors, had 12 other (NHCE) employees, operated a lab and sponsored a 401k safe harbor, cross-tested plan. Effective 5.1.2024, the practice LLC sold its business to Hospital, which employed all 12 staff people that had worked for practice LLC. The doctors remain employed by the practice LLC, which contracts their services to Hospital. I have little to no doubt that the practice LLC/doctors meet the IRS definition of 'hospital-based physicians'. One of the doctors bought 1 share of Hospital. So, there is likewise no doubt that an affiliated service group now exists. Hospital sponsors a plan that now benefits the 12 staff employees. It provides a 5%-of-pay profit sharing contribution to all Hospital employees, and sports a 401k safe harbor feature with a safe harbor match. Here are some of my questions: 1-The practice LLC's plan can aggregate/is aggregated with the Hospital plan, right? 2-That permits the doctors to make 401k deferrals to the practice LLC's plan, to the 402g maximums, right? 3-Can the practice LLC make cross-tested profit sharing contributions to its plan for the doctors, since the employees of Hospital are receiving an amount from Hospital that serves as a gateway minimum? 4-For 2024, can the practice LLC plan compute profit sharing contributions and apply nondiscrimination rules just to the period of 1.1.2024-4.30.2024 for the 12 employees AND THE DOCTORS?

X had benefits in a former employer’s 401k plan. X wanted to direct the benefits to make loans to local construction contractors (no familial, no other business relationship), with promissory notes with stated interest rate and with collateral to secure repayment. X sets up an account at a local bank to roll the $$$ into the account. Between X, the bank and his accountant, there was a miscommunication; rather than an IRA, the bank simply opened a regular business account for X. The 401k plan sent the $$$ to the bank and reported it as a direct rollover distribution from the 401k plan. The bank placed the $$$ in the account (not an IRA). Now that the problem has been discovered, X has sought my assistance to remedy the situation. Any suggestions will be appreciated

IRA funds were drained by the owner's son hacking into her IRA account online. Son took the money, a police report was filed, and son is facing felony theft charges under state law. The money is gone; used to pay off gambling debts. The IRA custodial institutions were notified. They are investigating. The IRA owner has now received from those institutions Forms 1099-R reporting the funds taken by the son as taxable income to the IRA owner (the parent). It would be adding insult to injury if the IRA owner has to pay the income taxes due on the stolen funds. Any suggestions on how to handle these Forms 1099-R with the IRS?

Small employer group health policies have, since ACA, been allowed to impose no more than a 90-day waiting period on new employees before they must be offered coverage. 42 U.S.C. 300gg-7. Can a small employer offer coverage in that time frame to a new employee, but it would require the employee to pay all of the premium expense until say 1 or 2 years of employment have passed?

High earner under age 50 works for two employers. For 2023, he electively deferred $22,500 into one employer's 401k plan as Roth. In the other, he electively deferred $7,500 as tax deferred. He will have to have $7500 returned to him. Is there any ordering of such, i.e., Roth before tax deferred or tax deferred before Roth, that must be followed or can he choose whichever?

I am tasked by a client with getting the ACA 1095 (and 1094) filings done (way late) for years 2017-2020. I am looking software suggestions. Thanks in advance.

For 30+ years, I drafted plan documents for clients and consulted them when issues arised. Most of my clients (small professional practices) used a local investment adviser/broker to invest plan assets, and a local accounting firm to perform allocation/testing computations and Forms 5500 and SARs. Some time ago I notified my plan document/consulting clients that I would no longer be a provider of plan documents, though am yet available for design, operations and fix-it consultations. Since July 1, I've been contacted by a few 'procrastinators' looking for a source of just plan documents for Cycle 3 restatements and later updates. If you so provide documents separate and apart from other services, and would be interested in either referrals from me or providing a document with me involved in the design, please e-mail me at johnsimmonslaw@gmail.com. Thank you