Jilliandiz

Client needed to take a RMD for $40,000 in 2006...he only took $39,500...what happens if he didn't take the additional $500 that was required? Thanks

DC Prototype

Plan Year End is 6/30/06. Owner's D/O/B is 10/7/35, therefore becoming 70 1/2 in May, 2006. When I calculate his first RMD, can I use the 6/30/05 valuation ending balance, or do I have to do a special valuation to figure out his 12/31/05 balance and calculate it from there? What account balance date would I use for the first RMD and then what would I use from that point forward? Any thoughts?

Do foreign taxes get reported under expenses or earnings when filing the Schedule I?

Can a participant have a negative cash balance and a positive stock balance?

I called the DOL on a similiar issues yesterday. YOu can have a Cafeteria Plan and a Welfare Plan..but you can also have them govered under the same document....to make for one filing...so here's what they said. 1. If a Cafeteria Plan has over 100 pp at the beginning of the plan year and the plan includes "any" type of welfare benefit (vision, dental, medical, etc.) then a 5500 should be filed for that plan showing the welfare benefits, the DOL only cares about the welfare benefits in the plan. 2. However, a Cafeteria Plan and Welfare Plan can also be govered under one plan document, if that's the case then only 1 5500 needs to be filed reporting the welfare benefits, you can combine the info. 3. If you have separate documents for each plan, then they stand alone and should be treated separately.

What are you required to file...a 5500 and Schedule C only?

Are there any rulings regarding purchasing land from your IRA?

Accounting client is retired, he received a 1099 from his Defined Benefit Plan Distribution and also a W-2 showing wages paid to him coded as Defined Benefit Plan/Nonqualifed Plan....should a DB Distribution received be recorded on a W-2? That doesnt seem right to me that he would have a 1099 and a W-2...any thoughts? My next thought was maybe the W-2 is actually for a deferred comp plan arrangement or something, because its coded as NonQualified Plan and DB Plan, my gut is telling me the coding was incorrect on the W-2? Bottomline..can you W-2 someone for receiving a DB Distribution? And if someone did receive a deferred comp plan, would it be reported on a W-2?

There are recent notices going on from the IRS regarding the "period of relief" for Simple IRA plan document to be updated...if a plan was terminated in 2005....do you think there still needs to be an updated plan document? I am assuming so b/c I believe this "period of relief" reflects GUST? Anyone else seeing these come through their offices?

Can a plan be top heavy the first year?

Can a nonprofit have a regular 401K plan only? Maybe its a regular 401k plan? We have been provided no information thus far..I was just told I was to do an audit for a nonprofit retirement plan...I assumed it was a 403b plan?

Because its an ERISA Employer plan, I guess its always been audited...are they not required to be audited? This is my first 403b plan and our company has it as a takeover? Any input would be appreciated.

What if a plan was determined to be a Large Filing Plan beginning with 2004, and then again in 2005 it was filed as a Large Plan…however it was never caught by the TPA that a 2004 audit was required…can you skip the 2004 audit year and begin with the 2005 audit year? What are the consequences or suggestions for not auditing the 2004 plan year, but began with the 2005 plan year instead? Is that even an option?

I have a takeover Erisa 403(b) audit...with a calendar year end. The Life INsurance Company holds the assets and does the TPA work on this plan, but they said they will not any info until September?? How can that be? Don't they have to have all info released by April 30? Can someone help me understand why it might be taking them so long to provide the client with any year end information?

Can someone tell me the definition of a Key Employee for purposes of Top Heavy Testing. I always confuse this in my head. Thanks

Participant elects the following as his beneficiaries: Spouse 50% Son 50% Since the spouse is not 100% beneficiary, does the spouse have to sign off on naming someone else the beneficiary. Does the percentage have any affect on this ruling? Is there somewhere I can look that states this ruling? Thanks Jill

Would they have to terminate the Erisa Plan like you would a 401k plan before they could establish a non-erisa 403b plan? What about successor plan rules, do you think that would affect them setting up this non-erisa sooner than later?

Can this be done? Are there any rulings or information I can read about this? I'm not too familiar with 403(b) plan in general and I have someone asking me about switching a current Erisa 403(b) to a Non-Erisa 403(b) plan? Can anyone help me here?

What are you currently running your participant loans at?

Participant wants to take a hardship distribution. The plan allows for loans, but a loan would put him in hardship, therefore does he qualify for a Hardship before a loan? Also, the hardship would be to pay off some of his mortage he owes on his house?

Is a 403(b) Plan the same thing as a 401(k) plan, just that its sponsored by a non-profit? Do they have the same rules, limits, testing, etc?

When do you have to file a 5500 for a 125 Plan? What are the requirements?

I'm an active employee with a 401(k) account with my current employer. Can I rollover my 401k account while I'm still employeed into an IRA? If so, can I then take a distribution from the new IRA? I am under 59 1/2 years old.

Does the alternative payee (ex-spouse) from a QDRO have to have spousal consent, if they have remarried, when receiving their QDRO distribution from theirs previous marriage?