david rigby

Just in case you have difficulty locating that item, here it is. (Sorry, i don't have any information about whether any later IRS document modifies this.) IRS Rev Proc 90-49.pdf

20% is required for rollable distributions, but, as stated in the quote, the EE may submit a W-4P to elect "additional amount withheld".

Probably just a typo above, the correct form is W-4P. http://www.irs.gov/pub/irs-pdf/fw4p.pdf Extracted from page 4 of the instructions: "The 20% withholding rate is required, and you cannot choose not to have income tax withheld from eligible rollover distributions. Do not give Form W-4P to your payer unless you want an additional amount withheld."

It's enough extra that we invoice for it. And if you have accrued contributions, it's possible (likely?) that your final AFTAP differs from your estimated AFTAP ratio.

Excellent advice above. One other thing to worry about: assuming you construct a non-discriminatory ERW, if any of the accepting EEs have a QDRO, it is very likely that the Alternate Payee must also get a portion of the ER subsidy. Check carefully.

Data as of 30-SEP-13 (Monday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 4.56 4.56 Aa 4.49 4.72 4.61 A 4.74 4.79 4.77 Baa 5.24 5.53 5.39 Avg 4.82 4.90 4.86 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.91 Medium-Term (5-10 yrs) 2.01 Long-Term (10+ yrs) 3.35

Don't overlook the possibility of a partial termination before the plan termination and/or due to the sale.

Ditto.

No. Nice try. The insurer will probably do that calculation, as well as it's own calculation of other optional forms and alternative payment dates, and take the largest of those to help determine an appropriate premium. For example, note that the 417e rates at the time of purchase date are not the rates that would be used the next year to determine the lump sum.

Usually, this is a matter that will concern the PBGC. See requirements for notifying PBGC of a Reportable Event. However, the phrase "county facility" raises the question: governmental plan? If so, that changes many things.

Nice thought, but it would require a change in the statute. See ERISA sec. 103-104.

Agree with QDROphile. Where do you find this in Code or regs?

Depends on your relationship? When dealing with an audit, it seems advisable to get all advice from the plan's attorney, and maybe your attorney. Just a thought.

Huh? Is the plan fully funded? If so, it seems unlikely that assets will be exhausted at age 83. Are you anticiapting a zero investment return?

Don't forget that a QDRO could have also included something awarded under the "child support" portion of 414(p). I'm not suggesting you look for trouble (or a subsequent spouse), but only reminding that any divorce opens the possibility of a QDRO.

What I mean is there is no mention of a QDRO. It's possible that the questioner assumed (but might not know for sure) that there is no QDRO, primarily because of the living arrangement. Don't look for trouble, but don't forget to check that which should be checked.

Check for QDRO?

Doesn't Box 1 already exclude all deferrals? Perhaps you mean "Box 1 less comp prior to entrydate"?

I believe all of us, including the IRS, would be better off if the IRS started by using Sal's solutions and advice.

You could take a direct approach and ask a question: RetirementPlanQuestions@irs.gov

I believe that should be 414(p).

Duplicate post. http://benefitslink.com/boards/index.php?/topic/54299-naughty-owner/

You might need a legal opinion from the attorney for the non-profit. Even if not needed, the N-P might want to get one anyway.

You could wait for the ERISA attorney to weight in. Or you could run! The payment must be reported on Line 8d. Also must consider how to complete Line 10b and 10d. However, this is much more than a 5500 problem. Perhaps the owner wants to consider the $42K as a loan between the plan and the participant? Prohibited transaction. BTW, was there a distribuable event?

Just my hunch, but you should ask the plan's attorney: For example, on 08/31 you adopt a resolutiion to terminate the plan with a DOPT of 10/31, then on 09/30 the sponsor dissolves. Does the DOPT automatically become the dissolution date? Maybe. I don't know, and it might not make any difference, but it might also be something to get clarified.