Harwood

If, at the time of distribution from a qualified plan, the recipient is a Non-Resident Alien, there is no SSN or Taxpayer Identification number needed. Such distributions are reported on Form 1042-S, not 1099-R. The use of an SSN/TIN is not required on Form 1042-S.

1. Check out PLR 9511043, 12/21/94. It deals with the issue of a variety of deductions and calculating take-home pay subject to levy. Short quote: "deductions that are in effect at the time of the levy will generally be allowed." 2. The IRS reserves the right to disallow some deductions. Call the IRS contact on the Form 668 Notice of Levy form if there is any doubt. 3. Garnishments and minimum wages, etc are payroll questions and dealt with in books such as "The Payroll Source" from the American Payroll Association.

IRS Publication 502 Medical and Dental Expenses What Is the Definition of Medical Care? Medical care means amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body. The medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Medical care expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. Medical care expenses also include limited amounts paid for any qualified long-term care insurance contract. Cosmetic Surgery Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. This applies to any procedure that is directed at improving the patient’s appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. Procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction generally are not deductible. You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. Dental Treatment You can include in medical expenses the amounts you pay for dental treatment. This includes fees paid to dentists for X-rays, fillings, braces, extractions, dentures, etc.

Superb information MGB. I hope you didn't have to type it all yourself.

My Fourth Edition Pension Answer Book [1987] indicates that cash or deferred arrangements were permitted under The Revenue Act of 1978.

"As of" reporting for the RMD balance permissibly can be ignored § 1.401(a)(9)–5 Required minimum distributions from defined contribution plans. Q–3. What is the amount of the account of an employee used for determining the employee’s required minimum distribution in the case of an individual account? A–3. (a) In the case of an individual account, the benefit used in determining the required minimum distribution for a distribution calendar year is the account balance as of the last valuation date in the calendar year immediately preceding that distribution calendar year (valuation calendar year) adjusted in accordance with paragraphs (b) and © of this A–3. (b) The account balance is increased by the amount of any contributions or forfeitures allocated to the account balance as of dates in the valuation calendar year after the valuation date. For this purpose, contributions that are allocated to the account balance as of dates in the valuation calendar year after the valuation date, but that are not actually made during the valuation calendar year, are permitted to be excluded. © The account balance is decreased by distributions made in the valuation calendar year after the valuation date

If the excess deposit was truly an error, then with the company's written direction, it is acceptable to refund it to them. Isn't it a general rule of correction to make things the way they would have been had the error not occurred? Assets do not have to be kept in the plan in all situations. I have no cite.

My opinion: 1) use of a company car - whatever is taxable income here can be excluded if the plan compensation definition "excludes reimbursement or other expense allowances" 2) a car allowance payable in advance - is treated like a bonus. It can be spent any way the recipient wants. 3) reimbursement of car maintenance and fuel expenses - exclude if plan definition excludes taxable fringe benefits?

If it is Boilermakers Local 5 out of Princeton, NJ, it is a multiemployer plan. [Press reports call it Local 5 out of New York.]

Among lots of others, you can find "Alice in Chains" and "Pearl Jam" at freeerisa.ocm

Do the wages meet the definition of Plan compensation? Virtually all plans consider U.S. source income only [except, perhaps, for HCE determination].

If mostly Non Highly Compensated, I would use the best performing fund in the plan, not the Federal Rate [unless it outperformed the best fund]. Or, you can take the time to look at the investment gain/loss rate for each individual. When taking money away: allow Participants to keep the gain. If they suffered losses, reduce the forfeiture by the amount of the loss.

The article is from 1993. 'Nuff said

ERISA Q&A 107 [June 7, 2000] back when Nick Ferrigno and Frank Bitzer had the column: Said to follow the terms of the plan document regarding the actual allocation of the deferrals to participant's accounts.

Worker's compensation payments do not fall under any definition of plan Compensation that I've seen. Also, Worker's Compensation payments are often specifically excluded from "Hours of Service" calculations.

Don't forget the 1099-R: Box 2b. Taxable Amount not Determined Enter an “X” in this box only if you are unable to reasonably obtain the data needed to compute the taxable amount. If you check this box, leave box 2a blank unless you are reporting a traditional IRA, SEP IRA, or SIMPLE IRA distribution. Except for IRAs, make every effort to compute the taxable amount.

The instruction says you can ignore mutual funds that "are purchased during the plan year and sold before the end of the plan year." You cannot ignore mutual funds held at the end of the plan year.

Here is an IRS Publication on Community Property: http://www.irs.ustreas.gov/pub/irs-pdf/p555.pdf

Partner put in their own money yet it is not 100% vested. Non-vested portion is forfeited. Partnership can choose to do something outside of the plan. Amending the vesting schedule is only an option if the Partnership is willing to let all employees share in a more generous schedule.

I always liked this: "It is the opinion of the Department that the primary purpose of a pension plan is to provide the benefit of retirement income, not to make participant loans" ERISA Reg Preambles [Of course I have a plan loan myself]

Read the Missing Participant clause in the plan document

I sent a client a two page sample QDRO from the ASPA C-1 Study Guide. Client gave it to the parties. They used some white out, inserted their specifics, and filed the two page sample in court. Beware In Pro Per!

That Rev Ruling reads like a Private Letter Ruling. The specific plan in question had a 6-month provision and the IRS said it was ok. For hardship withdrawals in 401(k) plans, a plan can have suspend employee deferrals for periods of longer than 6 months [except for Safe Harbor plans].

A loan from a Qualified plan can never be dischargeable. A judge can stop the loan repayments; the loan will be deemed and taxed. But no [bankruptcy] judge can mess with plan assets and make them go away.

Although there was a distributable event, your distribution was unauthorized. Have you talked to the Plan Administrator about returning the check and instituting a direct rollover? Are you "armed" with the phone numbers of the nearest IRS and DOL offices?