Fisher

A regular 401(k) account can not roll into a Roth 401(k). It could roll into a Roth IRA but would be subject to taxation as described above

I looked at that ,and it is basically unclear. I was wondering if anyone has seen anything else related to them being eligible or not for a 457(b)

Can an Indian Tribe set up a 457(b) plan as a Governmental organization since PPA

If a Gov't employer realizes they have made contributions in excess of $49,000 this year to a 401(a) plan, can a 415(m) plan be set up by the end of this year to receive the excess contribution, or is it too late and the excess needs to go into a suspense account to be used as a credit next year? I have been told that once the money actually "touches" the plan, any determined excess can not go into the 415(m) plan. They would actually need to have stops in place so that no more than the dollar limit will ever go into the 401(a) and the calculated "excess" goes into the 415(m) directly.

Can a a participant roll over his after-tax account (cost basis only) to a Roth IRA this year regardless of income or would he have to wait until 2010 when the compensation limit goes away? The idea is to roll the cost basis over now to the Roth IRA and the earnings from the account to a Traditional IRA wiht his other taxable accounts

If an individual takes K-1 distributions from the S-Corp, no W-2 income, would he even be eligible to make an IRA contribution based on this income?

Does anyone know what the earliest retirement dates are that a participant in CalPERS or STRS can receive "unreduced" benefits, for purposes of electing the 457(b) catch-up?

Why not contact the vendor and see if they will bill the employer directly for the surrender charges. Then it would be a normal business expense and the particpants would be left whole.

A SEP could be a problem excluding all the other employees of the church. You could set up a 403(b) plan just for the 2 priests. This sounds as though they would be a church under 3121(w)(3)(A) and therefore would not be subject to ERISA, universal availiblity rules or discrimination rules. You could even allow all employees the opportunity to make elective deferrals and provide only the 2 priests an employer contribution.

Pretty much the same for ERISA 403(b) plans now, other than no ADP or Top Heavy in 403(b) plans.

I also have read, since posting, that the IRS and DOL are discussing this and a Church could inadvertently make the election if file the 5500 or use an ERISA document, where currently there is no inadvertent election. We may hear more about this later this year. Thanks

What actually is a 410(d) election? Is it simply an irrevocable written election to be covered by ERISA and to have participation, vesting, funding etc. provisions apply to the specific named plan? Is there any formal requirements as to what all has to be included (a sample)? What does the sponsor do with it once completed?

A client has a distribution coming from a qualified plan which includes some after-tax contributions. I'm thinking they could roll the after-tax account directly into a Roth IRA and the earnings could be rolled directly as well but would be treated as a conversion and taxable. Or they could just roll the tax-free amount to the Roth IRA and the taxable portion to a traditional IRA along with the other taxable portion of the distribution. Any thoughts on this process?

Would a substitute teacher over age 70 1/2 be considered actively employed, for RMD purposes, if on the "call list", since there is still an employee-employer relationship, even though they may not have worked any toward the end of the calendar year.

Dr A had a practice with a PSP and contributed $46,000 in 2008. Business closed 9/30/08 and started working in a hospital with a 403(b) plan. Wants to defer $15,500 to the 403(b) this year. My thought is that the 2 must be aggregated this year, even though business has closed, and he can not defer anything to the 403(b), unless if he is over 50, then he should be able to do the $5,000 catch-up. Any views would be appreciated.

I have a client who opened a SEP account in May of this year. There have been 4 contributions made of $1,000 each. He has been informed by his CPA that he should have a 401k instead. I am trying to find out if we can set up a 401k, then have the 4 contributions moved to the 401k and reclassified as 401k contributions instead of SEP contributions. He did use the IRS model 5305-SEP to set it up.

A payroll firm just informed one of my clients that total compensation for SIMPLE IRA contributions do not include an employee's contribution to a Section 125 plan. They are saying that only compensation subject to Soc Sec taxes are included. Is this true? The Model form 5304 does seem to be silent on this in the Definition of Compensation in Article V.

Does the Universal Availability requirements under IRC section 403(b)(12) and the regs 1.403(b)(5) apply to 403(b)(1) and 403(b)(7) plans? I feel they do apply and the only real differences between a Church 403(b) and one for other eligible employers is that no document is required unless for a 403(b)(9) Retirement Income Account and the possible effective date of the regs

Thanks - that is what I was think too. Just wanted another opinion

What is required when a sole proprietor who has a SEP later incorporates? Does he need to complete a new Model 5305-SEP? Does he need to set up a new SEP account?

An employee was participating is employer A's (non-Gov't tax-exempt org) 457(b) plan and terminated employment. He had elected to receive payments in 5 annual installments beginning 2010. Since then, the employee has become employed by employer B (also a non-Gov't tax-exempt) that also has a 457(b) plan for which he is eligible. Both plans allow for transfers and receipt to and from other 457(b) plans of private tax-exempt organizations. 1. If the employee transfers his account from employer A's plan to employer's B, does the elction he made of 5 annual installments effective 2010 remain in place? And if so, how can the distribution occur while still in-service? 2. If he had originally elected a lump-sum upon separation from service but elected to transfer the account prior to the distribution date, can his account be transferred to plan B and take on the features of the new plan and any new elections allowed?

I heard there may be a possibility that there could be legislation this year allowing Roth accounts in 457(b) plans. Is there any truth to this?

This is one of the best charts I have ever seen. Thanks especially for the phase-out ranges with IRAs and Roths, which is always confusing

Does anyone know of any site that may allow someone to stop their RMD if return to work with same employer. Example: If someone separated after 70 1/2 (say 2006) and took a RMD in 2006, if they returned to work for the same employer in 2007, could they stop the RMD until stop working again? Would it matter whether they went back as full-time or part-time?

Please verify that the 5 year period for which an employer can make contributions for a former employee is the 5 taxable years following the year in which separation occurs. Example: EE retires 6/30/2006. Employer could contribute, up to the 415 limit, in the year of retirement (2006) and for an additional 5 years (2007 - 2011).