JOH

if the IRA owns 100% than yes, I would suggest he does not provide any services. However, if the IRA owns less than 50% and there is a manager (that is not a disqualified person to the IRA owner) that oversees the entity, then realistically, the IRA owner could provide his or her expertise as long as the board/manager approves it, the IRA owner charges a fair wage, and it benefits the business. it's been a couple of years since I've had to look at this but i think there is a tax court case that allowed this. unfortunately, all my notes on this stuff is in my office and I haven't been in my office for a couple of months.

Depends. How much does the IRA own and is someone else the manager?

Check out Ted Kao at Pension Benefits Consultants 510.836.5300. Very reasonable.

Could this be viewed a potential PT since the assets in the retirement account are being used as something like a collateral?

if your concern is that the plan no longer exist, just have the employee roll it into an IRA and once the new plan is established, s/he can roll it into the new plan if they want to.

Usually the asset is non-forfeitable. If the client has a RMD, they could do a QCD of the asset as long as the charity is willing to take it. If it is truly worthless, they could do a distribution-in-kind by having the asset registered into the client's name for $0 value.

Just putting this out there, does anyone have a resource that provides a good comparison or mid-level information for various plans. Like 401(k), 403(b), 403(b)(9), 457 plans, 457(f) plans, etc. Thanks

Thank you all

I know that there will probably be an increase to the contribution limits for 2022 but does anyone know if the IRS has officially released the contribution limits for 2022 yet?

I do- you can't rollover into Roth IRA.

My understanding of the Spousal Assumption Rules was that she could do spousal assumption at anytime (but once it's done, it's done). So say she's 52 years old when you pass. She can identify the IRA as a Beneficiary IRA and take the funds out according w/o the 10% penalty. Once she obtains the age 59.5, whatever is left in the Beneficiary IRA, she can claim as a Spousal Assumption and make it her own IRA. Somebody can correct me if I'm wrong. But in this scenario, there would be no need for 2 separate IRAs. The only drawback would be the annual required distribution would be more because the value of the IRA.

Because she passed prior to the BDD, you would use the oldest beneficiary DOB for RMD purposes.

What was the his actual date of death and when was her actual date of death? Just curious to see if the Beneficiary Designation date comes into play. And did the spouse make a claim for the account.

I'm assuming that it's not a loan for primary residence and it was a general purpose loan? If that's the case, the participant cannot make payment on the loan because the eligible maximum period for repayment has expired (see Rev Proc 2021-30 6.07(3)(a). Section 6.07(2) says to issue a 1099R for the year in correction, which I'm assuming is this year.

It is a governmental Non-ERISA 403(b) plan. And the Plan documents speak on loans, defaulting/deeming a loan, and even how to payback a defaulted loan but it is silent on if a defaulted loan could be distributed due to a qualifying event. I'm curious to know if anyone has ever dealt with this situation or outside of a Non-ERISA plan, how anyone has dealt with someone wanting to offset a defaulted or active loan due to a qualifying event?

I have a client (non-ERISA 03(b)), who defaulted on a loan in 2019 (it was also deemed in 2019 and a 1099R issued) who is now 59.5. They want the defaulted loan removed so they can take another loan. I was under the impression that once a client has qualifying event, that they would be able to offset the defaulted loan. But reading the requirements for what offsetting a loan, I don't think it would be allowed b/c the loan is not in good standing. Outside of the participant paying back the defaulted loan, is there any other option for the participant to "cure" or "offset" the defaulted loan? Could they just request the defaulted loan to be "distributed" to them since they have a qualifying event? In that case, since a 1099R was already issued for the defaulted loan, we wouldn't have to issue another 1099R right? Any guidance would be appreciated.

Does anyone know if there is a floor for the Mandatory Withholding requirement? I know that you don't have to issue a 1099R if the distribution is less than $10. But is there mandatory withholding on the $10? if not, does anyone know what that floor would be?

Ray- you are correct that the PLR only applies to that specific taxpayer but it does show IRS approach regarding the matter.

Not quote me on this but I think I remember a PLR regarding this matter and it was allowed. But I could be completely wrong.

Just curious- how do you handle HSA accounts and escheatments? Do you treat the HSA like an IRA because it can make investments in Mutual Funds or do you treat it like a checking account? I've looked and couldn't find any guidance about how if or when to escheat a HSA account. Any guidance would be appreciated here, thanks

Hi all- I was wondering if anyone knew the actual formula that is used to calculate the Lifetime Income Illustrations that are required in 2022. I know that DOL has the calculator but was wondering if some had the actual formula for both the Single and Joint, thanks

Hi BG5150- the company handles Mandatory Rollover IRAs. If your interested in outsourcing the rollover IRAs, send me an e-mail and I can get someone to get you some information. We have various companies initiate the Mandatory Rollovers to us and from there, we try to contact the client and if need be, process the escheatment in certain situations.

can someone provide the link IRS is requiring for this disclosure, thanks

When I was working for a another custodian in my previous life, the stance was if the furnace needs to be replaced due to normal wear and tear, than it wasn't approved; however, if the furnace stopped working due to an incidence (e.g. flooding in the area) than because it was not foreseeable, the request would be approved.

Sorry- meant to say it shouldn't be co-mingled like that