k man

A says you have until december 31 to delay. B says ALL subsequent payments are adjusted to reflect the one year delay. if you do it the other way you aren't delaying all subsequent payments are you?

(2) Delay of repayment.--In the case of a qualified individual with an outstanding loan (on or after the date of the enactment of this Act) from a qualified employer plan (as defined in section 72(p)(4) of the Internal Revenue Code of 1986)-- (A) if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code for any repayment with respect to such loan occurs during the period beginning on the date of the enactment of this Act and ending on December 31, 2020, such due date shall be delayed for 1 year, (B) any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph (A) and any interest accruing during such delay, and (C) in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2) of such Code, the period described in subparagraph (A) of this paragraph shall be disregarded. under (A) You delay payments due until December 31 for one year under (B) you adjust subsequent loans repayments to reflect the delay. i read that to mean you adjust all future payments back one year. it just makes no sense to do it the other way. frankly who is going to complain if you interpret it either way?

i agree with this. it is the only logical interpretation.

it makes no sense to do it this way.

not a CPA but wouldn't the taxpayer be able to use the taxes paid as a credit to apply to income for that year?

CARES Act says tax is ratable over three years. lets say he pays back the distribution in year 3. what happens to the tax paid?

mike, how would the COVID loan work in terms of the limit if he already has an existing loan. lets say his account balance is 100k but he already has an existing loan. i i am guessing he can take 100% less the amount of the existing loan?

maybe it is semantics but it is optional. people who want to take from their IRA can and people who don't are not forced to.

larry do you think they could just reclassify the RMD they took from their IRA as a COVID and put it back anytime over the next 3 years? i have been thinking about the 60 day and what would happen if the distribution was more than 60 days ago.

i think RMD's are waived but participants can take an optional distribution of any size from their IRA or a DC plan. otherwise people would be forced to take a COVID distribution.

is spousal consent still required? can't find it anywhere.

https://news.bloomberglaw.com/employee-benefits/hardship-401k-withdrawal-penalties-waived-in-u-s-relief-bill does anyone know what made the final package (sausage)?

an extension is a no brainer. plans aren't even submitted anymore. if for no other reason give people one less thing to worry about in these trying times.

nothing in the ARA proposal looks to be directed to relief for participants.

just posted on the db board before i saw this. looking for information on whether there is a db extension. doesn't seem to be a big deal for the IRS.

is there any chance this deadline is going to get pushed back in light of the coronavirus?

how do you deal with the fact that they do not have us source income. if for example, the canadians get paid by the canadian sub or even the american parent in canadian dollars?

can canadians participate in US 401(k) plans? would they have to have us source income? can a canadian working for a us company being paid in canadian dollars participate in the plan? can a canadian being paid in us dollars participate? does anyone know the key issues when dealing with canadian citizens?

i could argue the plan is the legal owner of the fund shares but maybe that is semantics. i am not necessarily advocating a position. i was looking for guidance on the subject and their doesn't seem to be anything written.

is the plan legally required to post the dividend and then make a second distribution to the terminated and paid out participant or can they forfeit the dividends received after the participant is no longer part of the plan? i am not aware of any legal authority on the subject.

employer gives a stock grant subject to a vesting schedule. my understanding is in order to exclude this item from 415 compensation you would have to use the comp ratio test. there is an exception for income subject to 83(b) election. can anyone tell me more about this?

more than 6 years.

next question - under the DOL program do i need to correct beyond the 6 year statute of limitations?

can i use the DOL VFC program for this type of plan?

the participant was illegal and used a fake social security number. subsequently with the assistance of an attorney she has obtained a real social security number and deferred action on her status. can we just transfer the funds to the new social security number? another question is whether because at one point they were illegal is it a problem that they participated in the plan to begin with?