Jakyasar

I know the answer is no but second guessing because someone is challenging that it can done. I own the LI policy, not my plan and I want to pay with plan assets, the question how can I do that, policy is not owned by the plan What am I missing here?

Thank you both for your comments and thoughts @Paul I, good laugh on the mercy and that they have communicated anything to the employees. Even a better laugh, how they were able to open an account without the document? I have not seen any statements yet but I doubt it is a trust account. I cannot fathom that the legal department of the investment company allowed this. I am not touching this unless they seek a counsel @Peter Gulia I never use a document that is not pre-approved but here, we do not even have one The amounts deposited were based on the proposal provided but do not even know if the census matches or if the employees were informed of any contributions. There is nothing in writing, approved/signed proposal or any kind of resolution, not even a verbal contract or a handshake.

Never a dull moment Company X had a proposal. Did not confirm that they wanted the plan. In the meantime, opened an account in 2024 without a document, made a deposit, deducted for 2023. No 5500 filing, no SB, no AFTAP, do not know if PBGC. Now time for 2024 contributions/deductions. How do you correct this?

A non-spouse inherits an IRA and will pay the taxes. After taxes, can they roll into a Roth IRA? Thanks

New employees only, everyone in there is under age 55 so none will be affected. Attraction for 65/5, I like all necessary provisions to match for combo designs, reduces things to check and test and miss. Thank you both for your comments.

Looking at a combo proposal. DC has age 65 for NRA which I do not like as it should always have "and 5 YOP", my personal opinion. Is it a BRF issue adding "and 5YOP" now? According to the census provided, none of the employees would be affected by this change especially related vesting. Thanks

This is a stupid situation so a stupid question. One lifer, always had under 250k so never filed 5500. DC plan. Terminated the plan, all assets distributed by 12/15/2024. On 12/31/24, 6 cents hit the account and then rolled out on 1/2/2025. So, what to do here, any suggestions? Is there a deminimis for ignoring the 6 cents i.e. just do a first and final return for 2024? or Do a first and final return for 2025? or something else? Cannot get my head around this as this is the first time ever happened.

Thank you, interesting concepts of freezing the dividends. I will discuss with them. All the best

Happens to all of us but possibility of reality is there. Sometimes, it is not the financial advisor's fault that unexpected dividends pop-up. Still do not know what needs to be done?

Hypothetical question. Law/IRS says as long as the account is cleared prior to 3/31/2025, you do not need to restate the DB plan (required amendments aside). Plan DOT 12/31/2024, all assets distributed by 2/28/2025. On 4/2/2025, a dividend shows up in the account, amount not relevant. Rolled out sometime in April/May - not informed timely. Is restatement now required?

Totally agree, just wanted to check if there was anyone with a similar situation. I have already advised for counsel.

Update, they did het k-1s for 2024 but a few thousand only.

I do not think so as they get commissions from sales

Hi Joe owns XYZ Real Estate 100% (corporation) and has a DB/DC plan - no employees. He gets a w-2. Joe forms another entity with Moe (no relationship to Joe) 50/50 ownership, ABC Real Estate. The income is thru commissions. This is an LLC taxed as partnership. Neither partner gets a k-1 showing any earned income. Joe's commissions earnings from ABC RE, LLC are paid to his company XYZ RE and this income is the major source of income XYZ RE. No CG issues, how about ASG? Thanks

Hi A non-SH plan (combo with CB) HCE defers 17k over 402g limit (under age 50), 40k in total ADP testing is done using 40k, this is clear. How about ABPT testing, done on 23k or 40k (need to pass ABPT for 401a4 purposes as ratio group will not work)? The excess will be refunded sometime. Other than tax purposes, does it matter if refunded by 4/15 or later?

Neither applies but thanks for the suggestions

If a non-owner is still employed, plan document states it and plan provides AE increase, RMD can be deferred until retirement/termination/death

agree with both, thank you

I own 100% of my company My dad and his wife (my step mother) are both employees. My dad is HCE/key. How about my step mother?

Is this a terminated non-owner participant who attained the RMD age? If an active participant, what does the document say about non-owners getting RMD's? They can be possibly deferred and getting AE increase, all depends what the document says.

Fantastic and thank you

thank you for this not clear on the testing part - multiple HCE issue is another story but I am trying to understand for 1 HCE Say 1 HCE and 1 NHCE HCE will do 5% plus 7.5k NHCE will do nothing. My understanding 5k deferral is fine and recharacterize 7.5k as catch up, correct?

As not being a 401k person, have a question for the gurus out there. First year of the plan. HCE's will be limited to 5% and prior year testing. HCE salary is 100k so max 5% is 5k HCE is over 50, can they do additional 7.5k of catch-up and still pass ADP? Thanks

Follow up questions, say after year 7 is allocated, there are still monies left that cannot be allocated due to 415 limits. Let's say 100k is left. Q1. When is the 100k to be reverted back to the corporation? assume first year was 2020 and the 7th year is 2026. The way I see, revert to the corporation in 2027 after 2026 allocation is completed thus taxable in 2027? Q2. Taxation, 100k is added to the corporate income for 2027 (assuming above is correct). Corporation pays the 20% reversion as well, in addition to the income tax. What form is used for the reversion taxation? Bonus question: Q3. Let's say 500k (100% of the excess) was transferred to QRP and 100k was allocated every year and the return on investments were 100k every year so after 7 years still 500k is left in the QRP account (almost a true story). Any issues other than the taxation? Thanks

any takers?