KevinMc

Does the unrelated business income tax (taxable income?) affect shares owned by an accredited investor/participant in a limited partnership inside his qualified plan? Does the result automatically make the gains in the investment taxable even though held in a qualified plan? Would welcome any advice/direction for those who have knowledge/experience in this......thanks.

If a profit sharing plan terminates do all participants become 100% vested (even terminated participants)?

I have a prototype document that reads service requirements for elective deferrals/profit sharing completion of 1 year of eligibility service. Hours of service necessary for a year of eligibility service 1,000 (not to exceed 1,000). Does this mean they have to work a year with at least 1,000 hours and then enter the plan on the next entrance date or they can enter on the next entrance date once they complete 1,000 hours even if it has not been a full year?

I received a phone call from a relatively small plan saying they sold their business and one of the requirements was the 401-k plan needed to be terminated before change of ownership. What notice and in what time frame must be given to participants? Is it possible to terminate even a small plan in a relatively quick period of time? Any help is appreciated and any sample documents would be appreciated as well.

A 5% owner of a law firm is approaching age 70 and would like to be bought out of his ownership share to avoid having to take RMD's from his account balance? Would this work? For example, is there a "lookback" period the IRS has on a situation like this? Also, is there a separate IRS table for calculating RMD's from a 401-k as opposed to an IRA? Any help appreciated!

A small firm (about 30 employees) has a safe harbor plan where the 3% nonelective safe harbor contribution is made. My understanding is the top heavy testing is deemed to pass for a safe harbor plan but what if the firm elects to make additional profit sharing contributions? Under what circumstances, if any, would top heavy testing need to be done and how would the profit sharing contribution need to be allocated to avoid makin the plan top heavy (which it would be)? Thanks for help.

Thanks.

Is the federal tax withholding of 20% mandatory from a 401-k distribution less than $1,000?

Is safe harbor match money eligible for age 59 1/2 in service distribution if plan document allows such distributions in a 401-k plan?

I have a plan where the two owner attorneys are dissolving their practice and setting up separate firms. They currently have a safe harbor 401-k Plan. One of the attorneys has told me she wants to maximize her contributions and she will be the only employee in her new firm (and possibly her husband) but she will have contract labor. She has asked me if a SEPP IRA would be more practical than a 401-k and is she could roll the existing 401-k into the SEPP IRA if in fact that is what she establishes. Is the maximum contribution to a SEPP IRA $54,000 like a 401-k/Profit Sharing Plan? Would she be able to exclude the contract labor? Could she transfer her 401-k account into a newly established SEPP? Is a Plan Document and an annual 5500 required for a SEPP IRA? Would like some opinions on what would make the most sense.......any response to these questions or input would be greatly appreciated.

What is the easiest and quickest way to apply for a TIN for a new small 401-k Plan? Any help is greatly appreciated!!

Thanks for all the help on this. Awesome insights!!!

Small CPA firm with a safe harbor 401-k Plan where 1 of the CPA's and some of the staff terminated prior to end of year and formed a new firm. They will not receive Profit Sharing contributions since the plan requires employment on last day of year. Can they start a new safe harbor plan in December to make up for the lost profit sharing and to maximize salary deferrals or does it have to be a January 1 date for safe harbor 401-k?

If an owner is limited due to 401-k testing on his EE contribution, can he make a deductible contribution to an IRA to at least get his total contribution to the IRA limit ($6,500 in his case) even though he is over the MAGI limit on making IRA contributions while having a qualified plan at work?

Since July 31st is on a Sunday this year is the deadline Monday August 1? Thanks,

Ok, thanks. It sounds like if there are not going to be ER contributions it could be set up as a non ERISA 403 b and avoid testing and reporting requirements. What kind of notice has to be given to change from the 401-k to the 403-B if we decide to make the change.....

I have a non profit school for special needs children that currently has a 401-k plan and are wanting to switch it to a 403-B. Is there any benefit to doing this? Are all 403 B plans required to file a 5500 each year and maintain a legal plan document. If there is an advantage what are the rules with regard to when can it be done and what kind of notification has to be provided to participants, IRS, etc.? Any help is appreciated....

Distributions from a profit sharing or 401-k are subject to mandatory withholding. Does the mandatory withholding apply to a small amount like $300?

A company in Denmark owns an American corporation and pays them commissions for sales in the US. If they have a 401-k Plan for US employees does the name and address of the US company have to be the plan administrator? Can the trustee be the controller in the Denmark company or would it have to be someone in the US as well? Any guidance is appreciated.

Does a person who has a self employed 401-k (This is the term Fidelity uses) have to file a form 5500 if the assets are less than $250,000? Is this rule different than if a person has a traditional 401-k with multiple participants?

Is it necessary for a sole proprietor to have a TIN to put in place a 401-k plan. My thought is yes because it must appear on the 5500 but just wanted to check and see if anyone had any input?

For an ERISA 403b plan that doesn't exclude a particular participant for any other reason, can they "opt out" of receiving the employer match and/or discretionary contribution? The idea would be to negotiate a higher salary......any help appreciated.

Thanks, but can you still start the 401-k say in October even though you will not be terminating the Simple until 12/31?

A small business has a Simple plan (not sure if it is IRA or 401-k) and wants to start a traditional 401-k (safe harbor). Can this be done any time in the calendar year and do participants have to wait a certain time period before rolling the simple into the new plan? Any guidance on notifications/issues would be appreciated.

Is anyone aware of a separate RMD table for a 401-k plan that is different from the RMD table for IRA's? Someone is telling me there is a separate table but the IRS website seems to indicate they are the same. Any help is appreciated.