ratherbereading

Pretty sure this has been addressed before, but I can't find the discussions. Active participant last made a loan payment in 2020, thinking it was paid off. Investment house is showing she still owes $200 plus. Investment house shows her loan as Deemed. Can she still pay it off, and if so should she get a 1099R showing the loan default? Thanks!

We take 10% unless the participant waives the withholding or chooses another amount. From what I can find, that is the IRS rule.

Welcome!

Retirement distributions (early or normal) are "retirement income" and are taxed by your state of residence at the time of the distribution.

Good idea...

We do a download into Relius from the investment company then compare what the client gave us to what actually hit the investment company. There census was mess but finally got it all straightened out. I should have known when all was said and done that the remaining small amounts were from the gain/loss and not included them, but unfortunately, I did not. Yes to your second question!

I have a plan who failed the adp/acp test and refunds were processed. I included the gains from their late deposits in the test as they were not transferred to earnings at the investment house. It affected about 30 people and except for 2 people the amounts were well below $1.00. The other 2 were around $2.00. Is this a huge deal?

The job postings are for TPAs, etc. looking for staff. You can put your own ad out there but the cost might be prohibitive considering what you're looking for. I am also going to PM you.

We count it as such. But it's supposed to be zeroed out each year, like the forfeiture account.

I have plans with Empower and AF with net credit accounts but I've not seen them reported as negative fees. I have them allocated as earnings or used for plan expenses every year and we show them as earnings on the 5500.

I couldn't help it ...

**game** the system

How to Protect Your IRA from Creditors | Retirement Watch

Thank you!

Have a plan that failed the adp acp test. Participant is 60% vested. Relius is showing Allocable Income on the ACP correction. Is it 60% of the Refund Amount that is forfeited? How does the Allocable Income come into play then?

Interesting. I have a plan where the owners wife and 2 kids get a W2 as well as safe harbor/profit sharing/and max out their deferrals and none of them actually work there. Ever. The 2 kids have full-time jobs other places. Their max 401k contributions come out of one check at year-end. One of the kids over-contributed because they forgot they were getting maxed out at their father's company . . .

Thank you!

I know this has been discussed before, but looking for an answer without having to read through a bunch of regulations, etc. etc. Plan has 2 partners, no EEs. They both get a K-1. Is the limit based on 25% of their combined net/earned income, or is the limit based on 25% of their individual net/earned income? Thanks --

No, he didn't ask for a projected test. He's a Schedule C sole proprietor. He never makes his contribution until close to the tax filing deadline. It's only an issue because for the past 2 years they didn't do their flex 3% safe harbor.

It means I told the client the doctor could contribute 11000 and still pass testing.

Plan has 3 HCEs (2 contribute) and 12 NCHEs. Doctor/owner has until his tax filing deadline to contribute. Last year I gave him 11000 and 6000 was categorized as catch up. Test passed. This year I gave him 8850 and the test passes, the 11000 wouldn't work (change in demographics); however, it show a refund to HCE #2 in the amount of $550 (no SBJPA/Allocable Income/total Refund Amount)-- this in Relius. Then it shows the $550 as catch up to the doctor. Does that make sense? Thank you in advance.

Doesn't your recordkeeping system tell you? E.G. AST, Relius? Or you can Google. 🙂

Me too!!!!!

I am pretty sure clients keep nothing we send them. It's very annoying.

Same exact scenario here. We got them the 3% notice last week so you should be fine if they distribute it timely.