JanetM

Call me cynical, but I am of belief that eventually they will tax some Roth distributions. After the Greenspan Commission report in 1983, Social Security became subject to income tax. This was done to prevent huge deficits and aid the social security crisis. What makes you thing they won't do the same to the Roth 20 or 30 years from now. Congress will see millions to billions of untaxed dollars and simply change the rules. They do it all the time.

72(p)(2)© says a plan loan must be repaid (amortized) with level payments of principal and interest, made no less frequently than quarterly, over the term of the loan.

As long as both plans pass coverage they can. Our CG has 4 K plans because they all won't agree on the amounts.

Hold on, if the divorce decree (or some other court document) says the non custodial parent will be primary and the custodial partent secondary, then the Insurance company of custodial parent will insist that the requirement of non custodial parent to be primary makes them secondary payer. The non custodial parent would be able to fund the HSA to help with HSHP.

Maybe, maybe not. You say sister company will be unchanged but all employees in your company will be out of work. It depends on how the plan is set up and how many employees are in the other company.

Only if the plan allows rollovers from IRA or Roth IRA. Some do and some don't.

State law determines how QDRO is drafted. I have seem some QDROs that were only signed by judge - and they were valid. Some states require the attornys to sign, some the participant and alt payee. Check on the state laws

If he adopts her plan then there is still just one plan. The assets would be in a single trust, you file one 5500.

I was the financial manager for the USO at Keflavik Naval Air Station. Spent my time 4-wheeling when I wasn't working. Ever seen the sun set but then rise before it touches the horizon? One awesome site to behold.

Frozen would be better. After termination the expectation is to distribute assets.

Terminated Plan??? Doesn't that mean all the assets have to be distributed? Seems to me he should just roll to an IRA for ease of administration if the plan is terminated.

Just make sure they are listed in Circular 570, as required for all 412 bonds. http://www.fms.treas.gov/c570/c570.html#certified

Effen, I agree. I have been using CCH online for years now. Currently I have every option on the Pension tab - all the Aspen publications etc.... Couldn't live without it. The best part is how they keep it updated so you never have to worry about outdated information.

You seem to want your cake and eat it too. You are getting the ability now to not pay income tax on over $80,000 in income and you also want to save on tax deferred basis. You can't have both. I have been in your situation twice - 1988 to 1992 I lived in Iceland, and 1994 to 1996 I lived in Germany. Never paid on a penny in income tax on those 6 years worth of income. I funded a brokerage account with the money. After returning to the US I moved some funds from brokerage to IRA. Invest in stocks - you don't pay tax until you sell and capital gains are taxed less. Keep away from stocks that pay dividends and you will have no income to be taxed now.

Maybe he should rething the non qualifying asset? What is it? Most non-qual assets are illiquid and not really the best choice for retirement plan asset.

No, that sort of codified regulation does not have be in the document.

Me too.

I read the explaination in the technical explanation of HR4. Looks like the govt plan adjusts the amount shown on 1099. Tech explanation states the following.... 5. Permit tax-free distributions from governmental retirement plans for premiums for health and long-term care insurance for public safety officers (sec. 402 of the Code) Present Law Under present law, a distribution from a qualified retirement plan under section 401(a), a qualified annuity plan under section 403(a), a tax-sheltered annuity under section 403(b) (a “403 (b) annuity”), an eligible deferred compensation plan maintained by a State or local government under section 457 (a “governmental 457 plan”), or an individual retirement arrangement under section 408 (an “IRA”) generally is included in income for the year distributed (except to the extent the amount received constitutes a return of after-tax contributions or a qualified distribution from a Roth IRA).197 In addition, a distribution from a qualified retirement or annuity plan, a 403(b) annuity, or an IRA received before age 59½, death, or disability generally is subject to a 10-percent early withdrawal tax on the amount includible in income, unless an exception applies.198 Explanation of Provision The bill provides that certain pension distributions from an eligible retirement plan used to pay for qualified health insurance premiums are excludible from income, up to a maximum exclusion of $3,000 annually. An eligible retirement plan includes a governmental qualified retirement or annuity plan, 403(b) annuity, or 457 plan. The exclusion applies with respect to eligible retired public safety officers who make an election to have qualified health insurance premiums deducted from amounts distributed from an eligible retirement plan and paid directly to the insurer. An eligible retired public safety officer is an individual who, by reason of disability or attainment of normal retirement age, is separated from service as a public safety officer199 with the employer who maintains the eligible retirement plan from which pension distributions are made. Qualified health insurance premiums include premiums for accident or health insurance or qualified long-term care insurance contracts covering the taxpayer, the taxpayer’s spouse, and the taxpayer’s dependents. The qualified health insurance premiums do not have to be for a plan sponsored by the employer; however, the exclusion does not apply to premiums paid by the employee and reimbursed with pension distributions. Amounts excluded from income under the provision are not taken into account in determining the itemized deduction for medical expenses under section 213 or the deduction for health insurance of self-employed individuals under section 162. Effective Date The provision is effective for distributions in taxable years beginning after December 31, 2006. The term “public safety officer” has the same meaning as under section 1204(8)(A) of the Omnibus Crime Control and Safe Streets Act of 1986.

The company could calculate them. We do our own. Seems every company I am aware of who self insures does it a little.

Opps, you're right. Typed faster then the brain worked. Property settlement with decree would be needed - not qdro.

I would also say immediately. Make sure you are consistant with how you apply this to anyone who transfers. Do corrective amendment to the plan clarifying what happens to transfers.

I think Kathleen took a loan too. From the use of the word "borrow".

Supper Stuck - as WDIK points out. Since you deemed the first year to be 01/01 start. Had you drafted the plan efficitive 12/01 start and them amended to calendar year on 01/01/06 you could have pulled it off. But you are late in auditing and filing for 2005 year. Not that there is much to audit. Eligibility and receivable is all you have. Good luck.

Well in Randy's case that means that the plan says it will match the first 6% of deferrals. It doesn't have to say what the amount of match is.

Tom's puzzles are great. Goof off time.................