imchipbrown

I talked to Schwab and was told I could deposit the check online to my IRA or personal brokerage account. I did and it took. I put it in my IRA, so no lunch for a few more years.

I just got the check. It's made "To The Order Of: XXX LLC 401(k) Plan"! I'll have to call Schwab to see WTH I'm supposed to do with that. XXX LLC shut down 2020. All bank, brokerage accounts closed as well. I mean, I thoroughly killed and cremated everything. Nothing remains but the obituary.

Neither the Plan nor Trust exist, just the $95, so I think it has to be income first. Why the short round-trip (a couple years) to an IRA? Just lunch money, really.

I had a 401(k) that I terminated on 4/15/2020. I was the only participant. I rolled everything to my IRA. I filed the final 5500-SF return. I shut down my business on 9/15/2021 and retired! Yay! I'm sitting here minding my own business and an envelope arrives from Schwab. It's a statement with a Statement Period July 1, 2020 - March 31, 2025 showing that an old investment paid out a settlement of $95. I had to call to get a check issued because I haven't had online access to that account since 2020. OK, now I have the check. I'm going to deposit it. I just don't know where (IRA, personal account?) and how much paperwork has to be generated. If it's too big of a hassle, I was thinking I'd just rip up the check, but the account would be open (maybe) forevermore. What to do, what to do

I still have some of the stone tablets somewhere.

Breakfast will always be chancy without Mike pulling my bacon out of the fire. RIP Mike 🙏

Sounds like there's no "cash" to begin with.

I was driven out by the (In)secure Act 2.0. I still lurk every day. It confirms my decision to hang up my ghosts. I got many a piece of good advice on these boards. Dave and Lois, you've provided an invaluable service and I'm eternally grateful for it.

Bing sez: If the taxable amount is not determined on your 1099-R, it means that the tax-free portion of your annuity has not been calculated12. If you did not make any non-deductible contributions, the entire amount would be taxable1. If there is no amount in Box 2a on your 1099-R, the taxable amount is the amount in Box 13. If there is an amount in Box 5, this may be subtracted from the amount in Box 13. If the Form 1099-R shows an amount in box 2a and box 2b Taxable amount not determined is not marked, the IRS is going to go by the box 2a figure.

It's called THEIRS. Congrats on retiring. I went through the same process but never got the love note.

In Example 5, the Profit-Sharing Plan is pre-existing. I doesn't specify when it came into existence. The 401(k) "feature" is added in 2023 (possibly up to 10/16/23?), effective in 2022. As Peter points out, the sole-proprietor's compensations is deemed currently available on the last day of the individual’s taxable year. This is not the case for a rank-and-file employee. How would you run non-discrimination tests if there were employees in addition to the sole-proprietor?

Sounds like an accident waiting to happen. You should be able to scrounge around for the correct Form. Local CPAs, stationary stores, etc. A plea in your local Nextdoor neighborhood?

I might worry that a Form 5500xx might be due.

More happily retired every day. Sorry, just woke up from my nap 😁

I had the same thing happen with a client I had for over 30 years. He had a PSP (all in CDs) and I discussed and illustrated the benefit of adding a 401(k) feature to the Plan. No real interest. A year later he informs me he started a 401(k) with Ascensus. They had no idea he had a PSP and even numbered their Plan 001. The relationship was too long to not help Band-aid up the the mess and wish him well. I billed him for every minute of work. He paid and offered me use of his Maui condo for two weeks, which I gratefully accepted. He was used to having me as "the guy". You have no "guy" at Ascensus. Just and account number and a phone tree. I helped with the transition for another year+.