Appleby

Anybody? Issue has resurfaced

LOL. I think I will. Have a great weekend

That’s OK- I though you were just being funny as usual – no offence taken. The Avitar is my son...as someone pointed out, he is older now ( 3 –years old as opposed to the 6-months old picture I had for the Avitar). I have been trying to upload a new picture, but finally gave up as the files did not satisfy the requirements to be uploaded .

I guess that shots my theory... That should be does have, just bring the s over No Name. Obviously spell checker does not help when you use the wrong words that are spelled right

I usually type the text in Word –for the spellchecker feature- then copy and paste to the board. I do that with my e-mails as well---except for AOL, which doe shave a spellchecker

Me too- but then I though I was just missing something...

One source IRS publication 590 at www.irs.gov You can make the Roth IRA contribution as long as you receive compensation for the year…contribution limit the lesser of 100 percent of compensation or $4,000--$4,500 if you are at least age 50 by year-end. 590 defines compensation for purposes of making an IRA contribution

You are right. See IRS Publication 590 at www.irs.gov. Of course, if you are at least age 50 by year-end, you may contribute an additional $500

Hi Kate, The amount is taxed in the year of distribution. As you may already know, if the failure to withdraw the RMD amount by the deadline is due to a ‘reasonable cause’, the participant may request a waiver of the excess accumulation penalty from the IRS

From what I understand, income would be gains on the investments (dividends and interest) and the payment to the spouse must the greater of the income or the RMD or the year

BillP…Like Bird said, just complete the SEP form for your business to ‘adopt’ the SEP. If you like, provide Fidelity with a copy so that they can keep it on file. Since the SEP is just in your name, no problem…you can just make SEP contributions from your business to the existing SEP. If you do decide to move those assets to a new SEP, you may want to consider doing so as a transfer, instead of a rollover…too many errors occur with rollovers that can be avoided with a transfer…plus, with rollovers you are limited to one per twelve month period, whereas you can do an unlimited number of transfers at anytime.

We are a prototype sponsor…we requite the participant to use our customized forms, which includes a built-in Form W-4P

Kirk, see Treas. Reg. § 1.401(a)-20, Q&A-24(d) Q-24: What are the rules under sections 401(a)(11) and 417 applicable to plan loans? A-24: (a) Consent rules. (1) A plan does not satisfy the survivor annuity requirements of sections 401(a)(11) and 417 unless the plan provides that, at the time the participant's accrued benefit is used as security for a loan, spousal consent to such use is obtained. Consent is required even if the accrued benefit is not the primary security for the loan. No spousal consent is necessary if, at the time the loan is secured, no consent would be required for a distribution under section 417(a)(2)(B). Spousal consent is not required if the plan or the participant is not subject to section 401(a)(11) at the time the accrued benefit is used as security, or if the total accrued benefit subject to the security is not in excess of the cash-out limit in effect under §1.411(a)-11©(3)(ii). The spousal consent must be obtained no earlier than the beginning of the 90-day period that ends on the date on which the loan is to be so secured. The consent is subject to the requirements of section 417(a)(2). Therefore, the consent must be in writing, must acknowledge the effect of the loan and must be witnessed by a plan representative or a notary public. (2) Participant consent is deemed obtained at the time the participant agrees to use his accrued benefit as security for a loan for purposes of satisfying the requirements for participant consent under sections 401(a)(11), 411(a)(11) and 417. (b) Change in status. If spousal consent is obtained or is not required under paragraph (a) of this Q&A 24 at the time the benefits are used as security, spousal consent is not required at the time of any setoff of the loan against the accrued benefit resulting from a default, even if the participant is married to a different spouse at the time of the setoff. Similarly, in the case of a participant who secured a loan while unmarried, no consent is required at the time of a setoff of the loan against the accrued benefit even if the participant is married at the time of the setoff. © Renegotiation. For purposes of obtaining any required spousal consent, any renegotiation, extension, renewal, or other revision of a loan shall be treated as a new loan made on the date of the renegotiation, extension, renewal, or other revision. (d) Effect on benefits. For purposes of determining the amount of a QPSA or QJSA, the accrued benefit of a participant shall be reduced by any security interest held by the plan by reason of a loan outstanding to the participant at the time of death or payment, if the security interest is treated as payment in satisfaction of the loan under the plan. A plan may offset any loan outstanding at the participant's death which is secured by the participant's account balance against the spousal benefit required to be paid under section 401(a)(11)(B)(iii). (e) Effective date. Loans made prior to August 19, 1985, are deemed to satisfy the consent requirements of paragraph (a) of this Q&A 24.

…because the rollover rules prohibit the rollover of after-tax assets from IRAs to qualified plans. IRC Sec. 402©(4)

I just checked www.72t.net. Site appears to be down- if it still is when you try, then using the link at http://72t.net/Discussion/ViewPosts.aspx

Yes to # 1 To # 2… individuals have been allowed to operate the SEPP on a calendar year. I recall some recent discussion on the issue that may change that- not sure. Best bet, post your question on the message board at www.73t.net…look for answer from TheBadger and Gfw….they are the experts

Possibly...but there may be no advantage to having two SEPs instead of one, because of the controlled group rules. In general, the controlled group rules treat employers that are part of a controlled group as one employer for retirement plans purposes…which means that only one plan limit would apply . If she owns 100 percent of both businesses, the businesses are part of a controlled group. If she owns less than 100 percent, then the applicable rules must be applied to determine if the businesses are part of a controlled group …or part of an affiliated service group

I agree with WDIK...hence the distinction that Code 1 must be added is applicable, so that the 10 percetn pealty applies

Still Code L. See page 11 of the instructions at http://www.irs.gov/pub/irs-pdf/i1099r.pdf

This is not a new plan…just a new account under an existing plan. The account can be opened anytime, providing it is opened timely to receive contributions ( by the deadline for depositing such contributions).

Thanks Lori, AndyH , Jevd. I guess I was lucky- the twins are great- almost too good to be true... The three year-old? He’s great too, but …let’s just say I don’t think we could handle more than one of him at a time. We love him just the same and would not want to have anything about him changed. Awww Jevd. I hope your wife knows what you say about her behind her back.

So just to add…as it stands now, you must wait the two years before you rollover the assets to a qualified plan, as wmyer explained in his/her second post. Hi Wmyer, I think you answer a different question -than the one asked--in your first post?...Happens to em all the time when I get zealous

Hey Lori- thanks. Got into the business in 1997 by default. New to the country then, looking for something that would fit in with by banking experience. Hired by a brokerage firm to work in one area…on the day I stared, they decided to place me in the retirement plans customer service area- Thank Goodness!! I read everything I could put my hands on- soon came to be know as the expert. Funny thing is, they (at the brokerage firm) thinks I know everything , because I always know the answers to their questions. But as I tell some of them, it’s all relative. You visit a message board like benefitslink, or other medium, including conferences, and you realize how little you know. Got several retirement plans designations, one from NIPA…have been working on one from ASPPA for the longest- can’t seem to ever get enough time to study for the exams anymore, between my 9-5 (which is really a 8-8 most days) and my freelancing (no excuses Denise- She said to herself- no excuses). Freelance writer-retirement plan articles- mostly IRA focused Married Three kids-boys- one set of twins. Last one three years old. He runs the house and everyone in it.

It depends. There is no tax penalty imposed for such a transfer. However, the financial institution from which the assets are being transferred may assess a penalty. For instance if the assets are in a certificate of deposit (CD), and the assets are being transferred before the CD matures, the bank may assess an early withdrawal penalty… This may also apply to some fixed investments, annuities and such.The only way to be sure is to check with the financial institution.

I tried it..Ahhhhhhh!!!!! Now I don't want to touch my computer.