JOH

Having worked for an IRA custodian that specialized to alternative asset, I disagree. Solo 401(k) plans are non-ERISA and assets within that plan has to held in trust. So if a individual in a solo 401(k) plan want to invest in precious metals through their Solo 401(k), those precious metals must be held in trust and cannot just be held in a participant's safe deposit box. How would the custodian of the Solo (k) be able to provide valuations if the assets were not held in the name of the Trust Company FBO the plan? The company I used to work for had over 300 solo k plans and some invested in precious metals and all were held bought and held in trust by the Trust Company for FBO the plan.

Can someone confirm that a FICA Alternative Plan functioning under a 457 or 403(b) plan is covered under the CARES Act.

Do you have the guidance or notice on this?

My understanding is that distributions associated with CARES Act is not considered a hardship.

Would the mandatory 20% withholding now apply for withdraws from Qualified Plans? RMDs were are not eligible to be rolled over so the mandatory withholding rules did not apply. Since there is no RMD, does the mandatory withholding rules apply for all distributions for 2020, no matter the age of the PPT (outside of distributions not eligible for rollover)?

Hi all- Has anyone heard if IRS is going to provide guidance regarding RMD notices that were sent for 2020? I know that IRS provided guidance for the SECURE Act saying that if we had already sent RMD Notices to those who had not obtained age 70.5 by 12.31.19 that we could send a corrected notice by 4.15.2020. But with the CARES Act and no RMD required for 2020, are we required to send a notice to RMD age clients stating they are not required to RMD for 2020 but must restart for 2021? Anyone know?

A client can choose to have taxes withheld at the time of the IRA Conversion, it's the client's choice. If they do elect to have withholding, then applicable state tax withholding rules apply.

Larry is right, it's the balance as of the date when the loan is made. I would say the loan is made once the loan note has been executed. Regarding the 100% availability for loans, currently, that specific to "qualified individuals"(i.e. those diagnosed with COVID, spouse or dependent, those who suffered financial loss to loss of wage due to COVID-19, etc...).

With the tax filing extension from 4.15 to 7.15, does anyone know if IRS has extended Form 5498 delivery date from 5.31 to something else?

Thanks Peter. I reviewed the CARES Act after posting this. Looks like if the CARES Act passes in it's current form, a Participant will be able to defer loan payments for 1 year.

The proposed CARES Act would delay repayments by 1 year for all repayments due from the time of enactment to 12.31.2020. But this in the current CARES act and would need to be approved.

Hi all- Has anyone heard of IRS allowing or planning to allow deferments to plan loan payments or modification to plan loans in the midst of COVID-19? We have some clients asking that we modify their loans to a lower rate and defer payments but I couldn't find anything that allowed them to do it.

RMD are not eligible for rollover so the RMD would not be able to be rolled from the 401k to an IRA

Luke- the success rate is extremely low. I think I've seen 2 approved after the PT. But those clients had attorneys working on it.

Larry is right that the IRA ceases. However, in my experience I have seen some clients submit a PTE 96-62 (after the PT) and beg the DOL's forgiveness and hope that they can keep the IRA as an IRA. But that is a last ditch effort I've seen to save the IRA.

It depends... I agree with Larry about Disney; however, if the investment is in a LLC than depending on the LLC operating business, you may be subject to UBTI. I would recommend reaching to an ERISA attorney to determine if the debt (b/c of the UDFI of UBTI) and proceeds from the LLC is subject to UBTI.