Scuba 401

The RMDs would be eliminated if the owner went to work as an employee at another company that allowed non owners to defer payments after 70 1/2 and rolled over his account balance to that employer's plan. good point. but if they don't go to work for someone else they have to keep taking RMS's it seems.

Based on the definition of required beginning date it appears that the participant must begin receiving distributions if he was an owner during the calendar year he turned 70 1/2. however what if he subsequently sells his shares and is no longer an owner. ERISA outlines say that he would have to continue receiving RMD's. do you all agree with this or can he stop after he sells his interest?

i think you are agreeing with me that the exception applies. is that correct?

/ so can they do it or not? what is the general consensus?

as long as it is less than 10%, can an employer contribute and deduct the FMV of a contribution of employer stock to a defined benefit plan?

i believe that was included in the PPA amendment but i need to confirm.

for DC plans updated for EGTRRA, PPA and 415 are there any amendments due this year for calendar year plans?

it is not dividends in this case. i believe it is flowing to a schedule C in the form of commission payments. the payments are coming from the sole proprietorship of one of the other shareholders.

the plan says w-2 wages means wages for federal income tax withholding, plus all other payments to an employee in the course of the Emloyer's trade or business, for which the Employer must furnish the Employee a written statement under code section 6041, 6051 and 6052.

if a shareholder in the corp receives some income in the form of a w-2 and other income on a 1099 what plan definition do i need for his 1099 compensation to be counted?

i don't think it would be but i am trying to see if anyone sees a basis for suspending deferrals and not restarting since our clients. is it reasonable to argue that since there is no statutory guidance one way or the other the sponsor can suspend and then not resume?

nothing in the plan document. i agree there is no guidance. seems to me they ought to start with deferrals but if they didn't should they correct or let sleeping dogs lie. absent guidance it would seem like they could just do things differently going forward. (ie. restart the negative election).

do you consider negative investment returns for the entire investment portfolio when calculating lost earnings?

lets say the plan has a non statutory automatic deferral provision (not a QACA or EACA). the participant with no elections on file takes a hardship distribution. do you resume the automatic deferrals at the time the participant is eligible to defer again if they continue to have no elections on file?

i think the contribution must be made to the plan by the deadline for filing the corporate tax return in order to get the deduction.

if the employer contributes the profit sharing contribution by the deadline for taking a a 2009 deduction (september 15) when must the contribution be allocated to participants. can it be allocated at a later date or should it be done immediately?

does anyone see a problem with this type of situation. An RIA fiduciary service provider who is also acting as TPA to the plan also offers RIA services to terminated participants with respect to their IRA rollovers. The fee charged to the participant is always the same fee rate that the participant's assets were being charged for TPA services prior to the participant receiving a distribution.

You switched from "he" to "her" so I presume you have a specific employee pushing you on this. Explain that this is a common occurance in control group situations. Blame it on Congress, the IRS and the people who abused the system that caused the rules in the first place. Does your plan allow loans while at a related employer? I was about to suggest that but realized it might be a document issue or at least a payroll/payment collection issue. same employee had a sex change. just kidding. i inadvertently switched to female.

but a trustee to trustee transfer would only consolidate her account. she still wouldn't be able to get a distribution.

so the participant starts participating in the plan of her new employer and maintains her account in the old plan? is there any way to get her a distribution besides amend the plan to allow for in service distributions?

plan sponsor is a member of a controlled group but maintains its own stand alone plan. an employee terminates his employment with the plan sponsor and goes to work with another member of the controlled group. the plan says you do not have a separation from service if you are working for a related employer. i am thinking the employee does not have a separation from service even though this related employer is not participating in this plan and thus the employee can not receive a distribution. am i correct in my thinking?

how can i go back and get amendments from 10-15 years ago. we are dealing with a plan that has never been amended.

if the sponsor has never amended the plan which includes a period of many law changes and 3 remedial amendment period would you just send the IRS the most recent EGTRRA document or would they request that you recreate all the amendments?

i am new to the world of 457. lets say i put in a new plan today and an employee is 69 years old. can they take advantage of the catch up for the prior three years even when the plan wasn't in existence?

if my client is 1/31/2010 cycle and currently using an individually designed plan but intends on adopting an EGTRRA prototype plan, is it entitled to the april 30 deadline or the January 31 deadline?