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Deferral to the ROTH portion of the 401k was started over 5 years ago with a minimal amount of 1k. Employee wants to do an in-plan conversion of 49k to ROTH account bring the ROTH account to 50k. Here's another question: If there is 50K in the ROTH account and 50K in the pre-tax account, can a loan of 50K be taken from the ROTH account since the overall 401k account balance is 100K?

If an employee takes a loan from the ROTH portion of their 401K, is the interest payment portion of the payback not taxable since ROTH profits are not taxable?

Is the 401k plan name the same as the trust name? If different, why? Would they need different EINs?

Is there a way to find out for sure the answer to the question? It seems like it go go either way, depending on who you ask.

Employee 1: 20% owner wife of Employee 1: 20% owner brother of employee 1: 20% owner wife of brother: 20% owner mother of Employee 1: 20% owner This is a C-Corp, with 1 employee (20% owner) as the only W2 employee. None of the 4 other owners participate in the 401k nor do they draw any pay. Use form 5500 or 5500ez?

I own and am the only employee (W2 pay) of a C Corp which administers a solo 401k of which I particape and which allows in-service withdrawals. I will be turning 59 1/2 soon and would like to know my options and the forms I will need to file particular to the option(s) I act on. I'm thinking of continuing to work for my company, but possible take a distribution from the 401k. Can I move part of my 401k to my Traditional IRA while still working for the company? If so, what forms would I need to file and what would go on the W2 and where?

masteff....what does the document you linked to mean in everyday language?

Is there anything "wrong" with letting an HRA rollover to the next year. For instance, if yearly HRA is 5K, next year would be 10K, next year 15K....so that it could be tapped into for a really big medical expense. Plan would be for a C Corp with only 1 employee. Participant may or may not have a health insurance plan in place or might be part of a healthcare sharing organization (like Medishare)..... therefore HRA would be acting as a self-insured plan. Basically wondering if there is a limit to how much an HRA can reimburse in a given year for medical expenses.

Does anyone have info on where to find a low cost HRA plan document provider and possibly an administrator? This would be for a 1 employee C Corp. Anyone out there have experience in this area?

Corporation employs 1 of the owners (W2 wages). I haven't found any information on the limits that a Corp. contributes to an HRA. I assume it can contribute any amount!?! Could HRA be used to pay for Health Care Share Ministry fees (as opposed to typical health insurance premiums)?

In order for a corporation to open an HRA plan, does the corp also have to offer health insurance? If not, is it necessary for employees to have individual health insurance plans in order to take part in the plan? I find a lot of information on Health Reimbursement Arrangements online, but not all of my questions have been addressed. Where is THE BEST place to get answers to questions on setting up, administering, etc.

Don't want to terminate the plan if possible due to costs. What steps would need to be taken for Company B to become a successor sponsor to Company A's plan?

Thinking for in the future: Company A has a 401K psp. Eventually Co A will dissolve, but a different Company B (doing completely different kind of business) will be formed with 2 of the 5 shareholders from Co A. Only 1 shareholder from Co A has ever had a W2/401k account and likely the same employee/owner will be the only 401k account holder in Co B. What is the best or easiest way to keep the original 401K psp for Co B? Or is this not even possible? Can Co A's 401K psp also be sponsored by Co B at the same time. Then when Co A decides to dissolve, just transfer the 1 employee's 401K accounts to Co B's 401k plan? Hope this isn't confusing, but I know what I'm talking about

What does the new legislation made during the fiscal cliff talks mean concerning the ROTH 401k? I have a ROTH 401k, but does it have to be amended to be able to do the new ROTH conversion? Here is what my plan document states under ROLLOVERS: Rollover Contributions are permitted (Section 4:05): YES - All Eligible Employees may make a Rollover Contribution even if not yet a Participant in the Plan Rollover Contributions are permitted from: All qualified plans and tax favored vehicles allowed under Code section 402 (Section 4.05(b) Also, can a Traditional ROTH IRA be rolled into my ROTH 401K?

If an employee has an outstanding loan from his 401K can he still make deferrals while paying off the loan?

I'm thinking about the future for when my 1 employee company dissolves. Would I have to dissolve the 401k too or can it be kept alive? Also.... I started an Individual 401k thru TDAmeritrade for my company several years back, but have transferred all funds to a different Individual 401k I started (for this same company)....Does my company technically administer 2 401Ks even though the first one has no funds in it? Should the first 401k be "dissolved" or something? Thanks for the insights

Would a Solo 401k aka Individual 401k be appropriate in this case? Not planning to hire anyone else in the future. But if anyone else is hired, could it be worked so that any part-time employees are not eligible to be part of the 401k?

The other 2 owners DO NOT work for the business, they are only investors. But if the W2 employed owner receives a profit sharing into his 401k plan, are the other 2 investors required to also receive some kind of profit sharing outside of a 401k plan since they don't participate in the 401k plan?

A C Corp is owned equally by 3 people. 1 of the owners works for the C Corp as a W2 employee and is the only employee. Can just the W2 employed owner participate in a 401k plan or must all owners participate? Also, do all owners have to participate in the profit sharing or can the W2 employed owner be the only owner receiving profit sharing either through a 401k or as a corporation election? Would a regular 401K or a Solo 401k be the best fit in this situation?

Yes....I need an example. Participant took out a $35K loan from plan that had a balance of $70K. Loan current balance is $27K. Loan balance 12 months ago was $33k Plan currently has $52K ($35k + additions from loan payments + $7k contributions since loan). Please detail how to figure maximum amount for a 2nd loan.

Can participant take out another loan while first loan still active? If so, I assume the 2nd loan is separate from the 1st loan. How does one figure the highest loan amount for the 2nd loan?

True. Just be careful with the "Solo/Individual 401k" stuff; there is no such actual animal; it's just a marketing name. You'd be establishing a regular qualified plan, complete with compliance and filing requirements, including 5500 fillings, since the participant is not a 100% owner. what is the difference in compliance and filing requirements, including 5500 fillings between a Solo/Individual 401k and regular QP?

Small C Corp is owned by a son and his wife, another son and his wife, and mother (her husband is deceased). Only one employee (one of the sons) works and draws W2 pay. Can the C Corp establish a Solo/Individual 401k with the working son being the only participant in the 401k....or must all owners participate in the 401k even though they don't draw any pay?

OK...let's take 2 scenerios: 1. Employee grosses $11k during the quarter (paid quarterly) and decides to defer $10k. Would $10k be transferred to the ROTH account and the taxes be taken out of the remainder $1k? What amount would go on the W2 for the deferral - would it be $10k or $10k minus taxes paid by employee? 2. Employee grosses $10k for the quarter and wants to defer all into his ROTH account. Are you saying that taxes would first need to be deducted from the $10k and the remainder would go into his ROTH account? What amount would go on the W2 for the ROTH deferral - would it be the gross or gross minus the taxes?

OK...I just want to make sure I understand the 401k ROTH deferral as far as the FICA/Medicare taxing and filling out the W2 Example: An employee defers $10k to ROTH in a 401k (we're dealing with a C Corp). The employee portion of the FICA / MEDICARE would be 7.65% or $765, therefore only $9,235 is transferred to the ROTH account. The employER must also pay it's portion of the fica/medicare or $765. Am I correct thus far? What and where would the ROTH portion and taxes for on the W2?