K2retire

If that is what the particular document calls for. Not all of them require a loan offset until the distribution is actually made. In that case, if the former employee keeps making the payments, there should be no distribution -- deemed or otherwise.

As I understand it the 2009 5500 EZ form is not yet available on paper either.

If the medical bill was already paid by a credit card, it's pretty clear that it is no longer a hardship. If this participant has been doing this multiple times a year for several years (each time requiring a suspension from making new deferrals) how does he or she have any money left from which to take additional hardship withdrawals?

What is a cross tested IRA? Clearly the people responding to the article have no idea what they're talking about.

Agreed. But if the service agreement requires the TPA to maintain copies of the document, there could be liability on the part of both the TPA and plan sponsor.

I believe the IRS assigns that responsibility to the plan sponsor. Does your service agreement with the client say it is your responsibility? That might change the answer.

Usually the document will specify in which year the forfeitures must be used. Frequently that is the year of the forfeiture or the year following the forfeiture. That will determine for what year it must be allocated.

Waiting for now. May use 2008 form if the wait goes on too long.

Really. I can't even make a joke anymore? Sadly, there are those who would not recognize the joke. Even more sadly, there are probably plenty of folks who would avise using the shredder and forgetting the whole issue. (I talked to several such folks who didn't believe that they needed to restate their GUST document since they "changed their mind" and never funded it the plan just this week.)

Or does the failure to correct make the Roth money subject to tax?

And they still owe that safe harbor non-elective contribution from the time of the beginning of the plan until the time it is officially terminated.

Amend the tax returns on which it was claimed as taxable income.

ASPPA suggested a blanket extension earlier this week. Will they grant it? Stay tuned!

With small employers, I've never seen documented meeting minutes. Not that they shouldn't keep records, they just don't usually.

In a document without a separate trust agreement, wouldn't all trustees need to sign agreeing to be the trustees?

Did you mean to ask if the taxable income from converting a regular IRA to a Roth IRA could cause some of your Social Security payments to become taxable income? The answer to that is yes.

Is anyone else frustrated that this incredibly common issue is not addressed by EPCRS?

It is certainly possible that there is confusion. But it's not beyond belief that a million dollar plan might have (foolishly) bought an $800,000 property with an 80% mortgage ($640,000) that is now worth only $400,000 -- leaving the plan with a negative net worth of $40,000. Especially if said property was in California or Florida.

And if you happen to be a subsequent service provider a few years down the road, they are even more helpful.

Personallly, I've been there also. (And it was great fun delivering the news to my boss that his incapcitated uncle whose net worth was in the tens of millions had given me, rather than him, a power of attorney.) I doubt that will hold much wieght with the institution where I am employed, however.

me too

When I've worked as a adjunct instructor, that rule of thumb has been pretty close to accurate -- even when I taught pension plan law. By the time you prepare an outline of a lecture, dream up assignments and test questions and grade all of the above there are many more hours than just those in the classroom. Even ASPPA allows more CE hours for teaching a class than attending one.

Thank you Everett. I believe that what this individual has is a general durable power of attorney from his parent who is both the business owner and trustee of the plan. We have not yet heard any more about why he wants to make these changes or whether or not the business owner/trustee is in some way incapacitated.

And keep in mind that there is no requirement that it be a 50/50 split at all. I saw one recently where the participant didn't care for the invetment choices in the 401(k), so the QDRO gave his ex the entire 401(k) and he kept more of the other assets to offset it.

We are wondering if the person holding the power of attorney can truly act as trustee of the qualified plan. He wishes to amend the plan provisions.