K2retire

How is a plan participant NOT a party in interest to the plan?

The original post sounds like the TPA is the custodian of the assets.

Once the check was out of the control of the employer (in the mail) isn't it then effectively a contribution that has been deposited? The filing deadline for a tax return is a postmark by midnight on the particular date. Most banks accept deposits for the same day's business only until 2:00. Does that mean that deposits delivered to the bank between 2:00 and midnight on the filing date don't count? Whether a prudent fiduciary can continue using a TPA who forgets to make deposits is an interesting question.

You are eligible to roll over money into an IRA, Roth or otherwise, even if you are not earning any money currently. The current earnings are only required to make new contributions. You are also correct that your fiancee's income will prevent you from rolling into a Roth after you are married, until the law changes (which I think is scheduled to be in 2010). A year in which your earnings are down due to a period of unemployment is potentially a good time for such a move. But with your cash flow also down, do you have enough money to pay the taxes without using the 401(k) money to do it? At your age you stand to benefit greatly from the tax free accumulation of wealth over a long period that a Roth provides. But you also have to believe that the laws won't change significantly in the next 30 years. Your grandparents were told they would never pay taxes on their Social Security income, but now they do. There are many possible advantages to rolling those funds into a Roth, but there is no sure answer either way.

John, that's a terrific explanation.!

You are absolutely right that the possible scenarios are ludicrous. But I don't think that means that we can ignore known children of an existing or prior marriage just because the law is ridiculous.

Congress' actions often have a different impact than their intent.

But it doesn't sound like 12% is a plan limit. So until the 15% plan limit is met or the ADP test is actually failed, you probably can't get to a catch up amount -- unless there is some other language in your document to allow it.

I beg to differ -- BOY valuations are the real problem when trying to combine them with DC plans for testing!

The original post also mentioned one TPA saying they have to wait to do the EGTRRA restatement separately and the other saying it can be done now. We are currently writing all of our new documents on EGTRRA and restating any that need to be amended at the same time. The firm telling you it must wait is really saying that they are not yet prepared to deal with it, or want to collect the extra revenue from making you do the two things separately -- not that there is some rule that you cannot do it yet.

Both of the above answers are good advice. Finding an appropriate adviser (someone motivated by your best interest, not the highest commission check for what they sell you) is very difficult. Start at your local library where you should be able to find Morningstar reports on the particular funds you are considering. They are a great source of information. But notice I said the specific funds -- not the fund company. Personally I own funds with both of the companies you mentioned. Which is better depends on the particular fund, your specific objective and your overall investment allocation. One company might have a less expensive index fund while another has a better managed small cap fund.

In that case he would.

I've always heard that she would have to repay all money sources. Is that something that might vary according to the document?

Would you believe too many calls from participants demanding their money without regard for whether or not they had a distributable event? Or perhaps posting too late at night?

The reality that most employees (as well as many employers) will not take the time to learn about investments and then will want to blame someone when their choices don't turn out well.

That should be fun if she is still employed by the same employer, considering that it is likely to be impossible for her to get the money from the 401(k) plan even if she wanted to do so. ...unless she no longer works for that employer.

Actually, you don't have to convert anymore. You can go directly from the 401(k) to the Roth IRA now.

Why not compromise and amend only those years still open for audit?

The deadline, in most cases, is the business tax filing deadline. Corporations and LLCs taxed as corporations have until 9-15 if they filed an extension on a calendar year return. Sole proprietors, partnerships and LLCs taxed as partnerships have until 10-15. But pension plans are limited to 9-15 regardless of the employer's business structure.

Thanks for the info. I don't have a securities license, nor do I plan to get one but what you are saying is contrary to what every broker I've ever known has done, so I was curious.

George, brokers rely on friends and family members to have a client base. Is there something specific about retirement plans that contradicts that? I agree with Janet that the funds are likely to have to remain with the plan's brokerage firm. As for advising Mom behind the scenes without commission, I can't imagine how that could be prevented. But the intention is probably for him to get paid.

And after?

This discussion seems to mixing details about the annual audit required to be performed by the plan's CPA unless the plan meets one of the audit exceptions and an audit by the IRS or DOL auditors. How do they know things are done correctly? The form 5500 has questions about whether various aspects of the annual audit exemption have been met. And it is signed under penalty of perjury. The answers to various questions on Schedule I often prompt further inquiry from the regulating bodies. Certainly one purpose of random audits by the government agencies is to verify that the plan is being operated the way it should be. Often the government auditors will come calling based on complaints by participants. It seems unlikely that the government's audit budget has been increased sufficiently to allow a dramatic increase in that type of audit.

You have not provided enough information. Are Elizabeth's corporation and the partnership a controlled group or affiliated service group?

I understand your frustration. The small TPA firm that I left in 2005 still owes me money from their PSP. Although I've received distributions of most of it, it is an annually valued pooled account and they don't manage to do the valuation until 11-13 months after the plan year end, so by the time they make the distribution, I am owed another year's earnings. Rumor has it that they had a loss in 2007, so perhaps it will finally end!