K2retire

One also wonders if this type of asset is suiteable and has sufficient liquidity to allow the plan to meet possible distribution requirements.

What does the document say are the criteria and available sources for a hardship?

In most cases we process all distribution requests pro-rata from all money types. Due to limitations of our recordkeeping system's ability to properly track income vs. amounts deposited, we have written all of our documents to prohibit any in-service distributions or loans from Roth.

Because the SH provision had to be in the plan BEFORE the plan year started.

At this point can she be certain that the document provided is the most recent one and includes all amendments? With that possiblity in mind (and perhaps even in writing) I agree with jpod's point # 2.

Retirement plan loans are taxed exactly the same as any other loan. You pay no tax on the loan proceeds and you pay it back with after tax money.

Remember, most of the time it is is not a software issue -- it is that the client didn't complete DOL registration to the point of activating their signing credentials.

Did these clients ever sign any document officially terminating the plans? It they simply withdrew the funds without signing a termination resolution or amendment, they technically still have an active plan. That could be what Oppenheimer is reacting to.

Many business owners believe that. I've never heard of a government auditor who will buy it.

One of the main purposes of incorporating a business is to shield the business owner9s) from liability for corporate debts. There are som exceptions to that, which should be discussed with the bankruptcy attorney. The plan trustee(s) might have some personal liability, but some of the lawyers out there will know better than me.

Yes they must fix it by the filing deadline -- unless they file an extension.

We do not collect or review them either. However, we do keep copies if they are sent to us.

It shouldn't require that much technology. Just listen to the talk around the office. People are usually aware of what's going on in the lives of their co-workers.

You file with the IRS because Rev. Proc. 2008-50 says you do.

You've been talking to some of my clients, haven't you?

Is it a non-elective contribution or a match? It cannot be both.

I think CPI uses ASC. I know some people there if none of them responds, I'll send an e-mail next week.

Where I used to work, we did the calculations as you described and sent a copy of the calculation to the CPA. Where I work now, we tell the client to have their accountant do the calculation. It is terrifying how many CPAs have no idea where to begin.

And the owner's home is generally NOT considered a secure facility.

If they're like our clients, it's because you told them in writing and they don't bother to read!

For those who don't have proof, start by checking FreeERISA.com. If the form appears there, it was received by EBSA.

The answer is different for 401(k)s than for IRAs.

Not too loud. Congress may think that more taxes is better. Haven't they always?

It is possible to split it, although too technical for my limited brain capcacity. But you can't use the full disparity more than once in total.

What makes a 401(k) plan a good or safe thing is not the plan, it's how the money within the plan is invested. Plans themselves are highly regulated by the IRS and DOL with lots of built in protections.