Harwood

Pardon my ignorance - why are shares in the ESOP allocated to Joe not considered to be owned by Joe?

From the regs: (b) Exceptions. The following amounts are not taken into account in determining whether the required minimum amount has been distributed for a calendar year: (1) Elective deferrals and employee contributions that, pursuant to § 1.415– 6(b)(6)(iv), are returned (together with the income allocable to these corrective distributions) as a result of the application of the section 415 limitations. (2) Corrective distributions of excess deferrals as described in § 1.402(g)- 1(e)(3), together with the income allocable to these distributions. (3) Corrective distributions of excess contributions under a qualified cash or deferred arrangement under section 401(k)(8) and excess aggregate contributions under section 401(m)(6), together with the income allocable to these distributions. (4) Loans that are treated as deemed distributions pursuant to section 72(p). (5) Dividends described in section 404(k) that are paid on employer securities. (Amounts paid to the plan that, pursuant to section 404(k)(2)(A)(iii)(II), are included in the account balance and subsequently distributed from the account lose their character as dividends.) (6) The costs of life insurance coverage (P.S. 58 costs). (7) Similar items designated by the Commissioner in revenue rulings, notices, and other guidance published in the Internal Revenue Bulletin. See § 601.601(d)(2)(ii)(b) of this chapter.

Check out PLR 9008079

From Schedule H instructions: "The cash, modified cash, or accrual basis may be used for recognition of transactions in Parts I and II, as long as you use one method consistently."

Read IRC 414(p). Nowhere does it mention that either party must consent to the court-filed Domestic Relations Order. One example: I don't think that the person who falls way behind on child support payments should have a veto power over the court doing the right thing [as authorized by the IRC and ERISA] and issuing a QDRO for the benefit of the children. Likewise, should a recalcitrant ex-spouse stop their ex from receiving what a court of law says is rightfully theirs? 414(p) is one the very few exceptions to the "Anti-Alienation" protections of plan assets.

If withholdings from Qualified Plan Distrubutions aren't reported on a 945, where are they reported?

It looks like the 15th of the following month. Check Publication 15 - Circular E - to be sure.

10% is the default withholding rate for a RMD; it is not mandatory. The withholding is up to the Participant. For deposit schedules, check out the Form 945 Instructions at http://www.irs.ustreas.gov/pub/irs-pdf/i945.pdf

If the company's qualified tax advisor says it is ok to re-run the payroll, then I defer to that advice. It is too risky for my tastes but mbozek and GBurns make good points.

I think it is a principle of 401(k) deductions that you can't have a deduction after receiving the wages. These people already have received their bonus checks. The error of a lack of deduction is different than an error of receiving a paycheck for the wrong gross amount.

If the money was received by employees in 2004, you cannot rerun the payroll and take out 401(k) deductions at this late date. The employer is stuck with the consequences of the error.

"Schedule D must be attached to a Form 5500 filed for an employee benefit plan that participated or invested in one or more common/collective trusts (CCTs), pooled separate accounts (PSAs), master trust investment accounts (MTIAs), or 103-12 Investment Entities (103-12 IEs) at anytime during the plan year." I see nothing about mutual funds or registered investment companies. I don't think Schedule D needs to be filed in your case. [Neither the Trust Company or the Mutual Fund companies would be DFEs.]

Corbel document: "... if a Participant has designated the spouse as a Beneficiary, then a divorce decree or a legal separation that relates to such spouse shall revoke the Participant's designation of the spouse as a Beneficiary unless the decree or a qualified domestic relations order (within the meaning of Code Section 414(p)) provides otherwise or a subsequent Beneficiary designation is made."

Just as Austin said: "It must be deducted from wages."

The Moderator of the ABA session - which included two people from Treasury - was from Kilpatrick Stockton

http://benefitslink.com/articles/mass-tir-04-17.txt http://www.mintz.com/images/dyn/publicatio...ory-8-23-04.pdf http://www.mintz.com/images/dyn/publicatio...dvisory-804.pdf http://www.kl.com/files/tbl_s48News/PDFUpl...403/ela0504.pdf

Summer months could be considered an authorized leave-of-absence and loan payments suspended. Various options available when driver returns to work in the fall.

Try Publication 15-A "Employer’s Supplemental Tax Guide," pages 12-18 http://www.irs.ustreas.gov/pub/irs-pdf/p15a.pdf

Like I said in my earlier post, a TIN is not necessary for this situation.

You might try the "Sample Rates" calculator at: http://www.insurance.ca.gov/docs/FS-Consumer.htm Click on: Consumer Guides Long Term Care Rate and History Guide Sample Rates

The instructions for line 7i on Form 5500 state that "Code section 6057(e) provides that the plan administrator must give each participant a statement showing the same information reported on Schedule SSA for that participant." I know of no one who is giving participants a statement of the value of their account on their day of termination. For both Schedule SSA and for participants, a year-end valuation is the only realistic practice.

The Ingersoll-Rand case is from 1990. The ERISA Outline Book says that recent Supreme Court cases are tending towards less pre-emption of state's rights.

I thought that payments to Non-Resident Aliens are reported on a 1042-S and that an SSN or TIN is strictly optional. As long as the 30% or so withholding is taken out and sent to the IRS, the goverment is happy. So you can cut the check now, without any ID number.

If the plan allows for both, then it seems OK to me.

Age 59 1/2 is based upon your age when the distribution occurs. Age 55 is different. From IRS Notice 87-13: Q-20: What additional tax on early distributions from qualified retirement plans applies under section 72(t) (as added by TRA'86)? A-20: Section 72(t) (as added by TRA'86) applies an additional tax equal to 10 percent of the portion of any "early distribution" from a qualified retirement plan (as defined in section 4974© of the Code) that is includible in the taxpayer's gross income. A distribution (including deemed distributions under section 72(p)) is treated as an "early distribution" unless it is described in section 72(t)(2)(A) (taking into account section 72(t)(3) & (4)). A distribution to an employee from a qualified plan will be treated as within section 72(t)(2)(A)(v) if (i) it is made after the employee has separated from service for the employer maintaining the plan and (ii) such separation from service occurred during or after the calendar year in which the employee attained age 55.