Dobber

Not IRA specific but hoping someone can provide guidance What is/was the deadline for a sole proprietor/Schedule C to make 2023 Roth salary deferral contributions and employer contributions (profit sharing) to a previously established (in 2022) Solo 401(k)? My research is giving me conflicting answers thank you

I received an inquiry regarding taxation of distribution (more specifically ways to defer taxation) from a non qualified deferred comp plan (409a) - I have limited experience working with these plans. However, I have what I think is a straightforward question What strategies are available (if any) to defer taxation from a plan distribution? I am aware a IRA rollover is not permitted. Thank you in advance

Help! Post SECURE Act/IRS Proposed Regs re: successor beneficiaries is making my head spin - Scenario Traditional IRA owner, dies pre-SECURE Act & before their RBD Original designated beneficiary was "stretching" payouts & died in 2022 Questions Its my understanding the successor beneficiary is subject to the 10 year payout (which in this case - year 1 is 2023) I am struggling to get an answer re: whether RMDs are required in the 10 years and if so - whose life expectancy is used? Pre-Secure the successor bene "Stepped into the shoes" of the original beneficiary and continued the "stretch" using the remaining life expectancy of the original beneficiary - easy enough The IRS proposed regs (at least my interpretation) say the RMDs (during the 10 years) are dependent on when the account owner died - before/after their RBD - Does this mean (in this situation) the Successor Bene does not take RMDs? In other RMDs stop. Which doesn't seem to make sense? Or doe the successor beneficiary continue taking RMDs based on the original (designated) beneficiaries life expectancy for years 1-9 & drain the inherited account in year 10 Thank you in advance

The SECURE Act (Section 104) increased the tax-credit for a small business establishing a retirement plan to $5,000. Does a small business qualify (for the credit) if they already sponsor a retirement Plan (in this case a SEP-IRA)? They would you like to start a 401k in 2023 but only if they are eligible to receive the tax credit for a establishing a new retirement plan All help is appreciated Thank you in advance

@ESOP Guy Thank you for the response. Can you clarify why another plan can't be established? Is is due to the SIMPLE IRA "exclusive plan rule"? or something else?

401k plan participant account incudes appreciated employer securities and mutual funds The participant wants to transfer a portion of his appreciated company stock to a taxable brokerage account while rolling to an IRA the balance. Mutual fund balance would also be rolled to an IRA ensuring a lump sum distribution. More specifically he want to rollover the stock basis to an IRA (thus avoiding paying income tax on the basis) while transferring NUA portion to a brokerage account (avoiding LTCG tax until he sells the stock). Thus leading to no immediate taxation From my research the IRS has blessed this NUA strategy in a series of PLRs. My question(s) are regarding the order and method of transactions. For example does the stock need to be distributed first (before the mutual funds) or vice versa? Furthermore, does the ordering of employer securities rollover/transfer matter? For example, let's say the participant has $100,000 in stock ($10,000) is basis where the remaining $90,00 is NUA. Can the $100,000 be split (90/10) in a single transaction by a IRA rollover and transfer to a taxable brokerage account? Does it matter if the stock is moved via trustee transfer vs 60 day rollover? All help is appreciated.

Taking up the thread with a different question/fact pattern Client established his business (franchise with more than 1 location) using ROBS Client now wants to set-up a SIMPLE for his employees? Is this permissible? Thank you.

Very helpful. Thank you

Sole Prop established a Solo 401k a few years ago. All was well as he had no employees In February of last year (2021) a FT employee was hired Unfortunately, the Plan had both immediate eligibility & vesting for PS contributions. May 2021 - owner amended the Plan to a SH 401k and added a vesting scheduled for PS contributions - an effective date of 1/1/2021 The sole FT employee has since severed employment Question? How is vesting calculated? Is the former employee 100% vested (since there was no vesting scheduled when he became eligible) or does he follow the schedule (since the amendment was effective 1/1/21) prior to his DOH? All help is appreciated. Thank you

Can the initial 72(t) SEPP payment be prorated? Or regardless (when during the year) it's taken is the IRA owner required to distribute what amounts to the full year payment? What guidance has the IRS issued? All assistance is appreciated

What is the deadline to choose the 10 year payout? For example, can she choose the RMD method and subsequently (for example, in year 3 stop RMDs and) switch to the 10 year rule? Or does the option (10 year or RMD) need to made by 12/31 following the year of death? Once chosen - is she locked in? Thank you

How does the 5-year clock work upon a surviving spouse (sole beneficiary) inheriting a Roth IRA? For example, Deceased spouse, 74, died earlier this year (2022) Surviving spouse, 66, 100% primary beneficiary The surviving spouse has the following options: I am trying to wrap my head around the 5-year clock in re: to each of these options. 1. She can roll it into her current Roth IRA (treat it as her own) - Does the surviving spouse get the longer of - Clock in her own (previously established Roth) or the inherited Roth? 2 She can create a new inherited Roth IRA -Does she continue the 5-year clock? Or does it start anew because its now an inherited IRA? 3. She can treat the inherited Roth as as her own - Again, how does the 5-year clock work? Does she get the benefit of the years her husband held the account ? Unrelated to the Roth clock - Is there a situation where a surviving spouse would be subject to RMDs from an inherited Roth IRA?

401k participant has appreciated company stock Separated from service in 2021 He took (in 2021) a distribution of dividends (from employer stock)- It's not clear whether he took the distributions while employer or after severing service. My understanding is (one of the many NUA requirements) is to make lump sump distribution in the a single year. Does him taking a distribution (of dividends) nullify NUA? If so, would he be required to wait under the next "triggering event" to NUA qualify? All help is appreciated.

I am looking resurrect this very informative thread. An individual has a 401a program through a public employer (community college) & participates in a 401k with a private employer The 401(a) allows for employee contributions. Would these be deemed "pick up" contributions and thus not subject to the 402(g) limit? Individual wants to max his 401(k) deferral limit ($20,500) and make employee contributions to the 401(a) plan Is there ever situation/scenario where a 401(a) plan sponsored by a gov't entity allows for pre-tax salary deferrals (that would be included in the 402g limit)? I recall something about grandfathered $ Purchase plans allowing deferrals but then again I could off base. Thank you

Traditional IRA owner, 82, died in December 2021 - He took his 2021 RMD prior to his passing Surviving spouse, 81, 100% primary beneficiary Surviving spouse transferred his IRA assets to her traditional-IRA. However the transfer of assets occurred in 2022 - therefore his IRA had a 12/31/21 value Question(s) Is a 2022 RMD due on the (now deceased husband's) IRA based off the 12/31/2021 account value? Does the wife include the balance in determining her 2022 RMD? What am I missing? All guidance is welcomed

I don't work with DB plans - All help is appreciated DB participant died in 2020 Adult son - sole beneficiary I am being told the son is eligible for lump sum distribution - a IRA rollover is one available option Question: Son wants to convert the lump sum to a Roth IRA - For example, the inherited lump sum value is $20k. He wants to rollover (convert) the $20k directly to an inherited Roth IRA. I know this is permitted in the DC world (non spouse benefit can converted an inherited account to a Roth IRA) - Does the same rule apply to DB plans? Assuming a conversion is permitted - Is the son now subject to the SECURE Act' 10-year payout rule? Thank you

Solo Proprietor earlier this year funded a SEP-IRA for the 2021 tax year Now (due to a surprise increase in earnings) he wants to fund a Solo 401(k) - because he will be able to contribute the max @ $58,000 which he won't be able to with the SEP I am aware you can't fund both a SEP and Solo $401(k) in the same tax tax assuming the SEP was established using IRS Form 5305-SEP. That being said, what options, if any does the owner have in reversing/canceling the SEP contributions? And instead fully funding the Solo(k) for 2021? Thank you in advance

Has the 2020 IRA contribution deadline been deferred to May 17th? I noticed some outlets have been reported the extended (May 17th) deadline however the IRS hasn't posted/announced anything. Thoughts?

Small business owner (no employees) would like to set up a Solo K plan - however he wants to add his child (minor) to the payroll and have the child participate in the plan. I've read that in order to qualify as a Solo K ("Owner-Only") an employer must have no full-time employees other than themselves, a business partner and a spouse. - What about children? Question -Would the plan continue to qualify as a Solo K if the child is eligible to participate? Thank you

Does anyone know if a 401(k) participant that accumulated shares of company stock prior to the company going public can use NUA? The company is now public. However the shares were accumulated while the company was private. Participant has since retired and would now like to use NUA Thank you

@EBECatty - Thank you - Question answered

Its my understand the new age 72 RMD RBD is not required to adopted by a 401(k) plan - Assuming i am correct - Could a participant who would then be required to take their 401(k) RMD at 70 1/2 (plan rule) roll the funds (tax free) into a traditional IRA where they would have roughly 18 months before before having to take an RMD? Thank you

@spiritrider. I have a question that expands upon the OP's original Roth question. Can a qualified individual take a CRD from a pretax account and repay it within the allotted three-year period to a Roth account? With the understanding they would not otherwise receive a tax credit for what is essence a Roth conversion

I am hoping someone can provide guidance on the following – I am aware there is separate simple IRA thread however I have not received any responses looking for much needed guidance Thank you in advance What options does the sponsor of SIMPLE plan have if they can''t afford to make the required employer contribution? It's my understanding unlike a SH 401(k) a SIMPLE contribution can't be reduced suspend mid-plan year. In addition, a simple can't be terminate mid year My suspicion is this situation will come up frequently due to the havoc COVID-19 is having on businesses; particularly small businesses. Thank you

Same What options does the sponsor of SIMPLE plan have if they can''t afford to make the require employer contribution? It's my understanding unlike a SH 401(k) a SIMPLE contribution can't be reduced suspend mid-plan year. In addition, a simple can't be terminate mid year My suspicion is this situation will come up frequently due to the havoc COVID-19 is having on businesses; particularly small businesses. Thank you