kwalified

There is no spouse

Thanks for the response. I don't foresee a prohibited transaction especially if there is only one participant in the plan. The trustee wants to do this by the book.

A hospital employee is concerned that his 457 account balance may be jeopardized if the hospital becomes insolvent. He is considering rolling it over to a 403(b) he has. He is age 70.5. Would it only depend on if the 403(b) allows for 457 rollovers?

A traditional IRA holder has reached age 70.5. When he passes away he plans on leaving the IRA to his children. Will they be required to continue to take RMD's upon their father's death or are they postponed until age 70.5?

A 1 participant plan owns a tract of land. The trustee is wanting to sell a portion of it and wants to ensure it is done properly. I believe it is allowed as long as the proceeds are returned to the trust. Would the remaining portion of the land get a new deed in the name of the plan? Would any special appraisal be necessary?

Thanks for the replies. To add more clarity, no I am not an estate planning attorney and the plan sponsor has one. I am familiar with Ms. Choate. Thanks for the link. Jpod, I believe they are trying to determine what allocation will be made either to children and/or a trust. David, it does mean the accounts of the husband and wife. She has mild dementia and pretty much runs the day to day activities while he handles some of the affairs of the business. RMD's have been ongoing.

A profit sharing plan sponsor has appx 2.5 million in their personal accounts and the couple are in their mid-80's. They will take a hit with estate/inheritance taxes if the funds were ever distributed. They are wanting to establish a trust and make it the contingent beneficiary. I am of the opinion this is permissible, but want to be aware of pitfalls, if any, such a designation would result in. Has anyone had experience naming a charitable trust as a beneficiary?

Update: After an explanation on 5329, the IRS decided in favor of the participant. "no further action was due"

I agree. However, are you aware of a situation where it is beneficial to open multiple ROTHs from one traditional? Thanks

a 59 year old woman currently has a traditional IRA and is interested in converting to one ROTH or a few ROTHS. Due to her age, would this be advisable? If so, would multiple ROTHS be necessary?

Excellent points CuseFan and Jpod. Should be interesting to see how the IRS comments on this

It's good news because his PSP doesn't have the problem. It would have been a much bigger issue had he not been a 5% owner

yes, so family attribution applies. good news

RMD not from the IRA, but the PSP

I'm thinking he could have success requesting a Waiver of the tax on the 5329. My concern now is if he even had to take the RMD since he was not an owner when he turned 70.5.