Jim Norman

Sorry to hear this, I worked with Kirk on a couple of mutual clients over the years and always enjoyed our conversations. RIP Kirk.

Congratulations! Well done, Dave. Jim

I agree with the others that the TIC purchase with the IRA is potentially a PT. One must also remember that the penalty for IRA PTs is DEATH. The whole IRA is deemed distributed and taxable when the PT occurs. This is an area where an abundance of caution is warranted.

Tell us how you really feel, Bill! Not to mention that many approved plan documents have language providing that forfeitures may reduce "Employer Contributions" without any further language limiting what sorts of "Employer Contributions" may be reduced.

I don't know enough about what they do to really opine on the B-Org issue. However as you note, you specifically addressed this issue with their attorney and were "shot down". So why pursue it further? If the attorney were saying something that was clearly wrong, that would be one thing, but this is a F&C determination and he is coming up with a plausible result.

Since they are LLCs the "professional corporation" rule for the A-Org FSO is not applicable. An LLC is not a corporation (are they electing to be taxed as a corp?) and any unincorporated service organization can be an FSO to an A-Org.

You ask a lot of good questions, the sort that a TPA can answer. But you won't get good, knowledgeable answers from an online service charging $195 per year. Much like choosing to use something like legalzoom.com for DIY legal documents, or hiring an attorney who can advise you as well as create documents. Some thoughts. One 401(k) plan can cover both you and your wife, as can one SEP document. You don't need to roll the SEP accounts into it though you can. The maximum SEP is $49K the maximum solo 401(k) is $54,500, depending on your income of course. Also assume you have no employees and neither of you are part of a controlled group or affiliated service group with any other employer except each other. You can mix and match SEPs and 401(k), but you have to read the plan documents, especially the SEP documents to see if this is allowed. No real advantage to doing so. You will likely need to file an annual 5500 form and also keep your documents up to date for legislative and regulatory changes. You can self-trustee a 401(k) plan opening up lots of other investment options. You can have separate accounts for each of you in a 401(k) or pool the plan assets for both of you perhaps reducing investment costs. Good luck.

What is the client trying to accomplish? Why do they care if they can defer on their commissions? Usually when clients say they want to limit comp, what they really want to do is limit the employer contribution expense. If it is a matching contribution, could they accomplish a similar result with a cap on match? If a PS contribution, could they limit the PS contributions and pass a general test?

4971 relates to failure to meet minimum funding standards, not applicable to a PS plan. Even if it were, that doesn't change the deductibility timing under 404(a)(3)(A)(i) or 404(a)(6).

I think you can get flux capacitors on Amazon...

Still a brother sister CG, minor child deemed to own both: http://benefitslink.com/modperl/qa.cgi?db=...ployer&id=9

At the risk of admitting my ignorance, how did you calculate that? I also get 45%. 8.5" * 11" = 93.5 sq in. Take away 1.25" each margin = take away 2.5" in height and 2.5" width = 6" * 8.50" = 51 sq in remaining area 93.5-51 = 42.5 sq in lost area. 42.5/93.5 = 45.45% lost

That's why DOL and Miller are going after plan fees, so the government can add its own 60 bps load. Brilliant!

If the 12-c is a cult calculator I guess I'm a member of a cult, I've got 3 of them: http://online.wsj.com/article/SB1000142405...0326458056.html

The newsletter seems a little overly broad. If a 401(k) plan is established, the SIMPLE is invalidated back to January 1. Question is, what are the consequences of this and are they worth it? Per 408(p)(2)(D), the SIMPLE would not be "treated as a qualified salary reduction arrangement".