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  1. Trying to payout this account. The participant (80) died in 2023. Has been taking RMDs. We need to take an RMD for the spouse now so we can roll the balance to her IRA. Do all pension RMDs use the uniform life table? CPA wonders if it should be a single life table. Thanks
  2. Bumping this post... Is there a worksheet to help re amortize a loan that was suspended during COVID?
  3. This client has resurfaced... asking questions. Am I correct with this example... Let's say that when the dust settles for the year he has room for a $35K VAT contribution and he deposits it. He already paid taxes on the money. If he converts it right away via an in-plan Roth conversion his 1099-R would declare taxes on the earnings alone. The Gross distribution would indicate the total conversion but the Taxable amount would be the earnings alone. 1099-R Code... The code would be 2, early distribution (because he is under 59-1/2)... and G, Rollover? The money path and documentation... Where would the VAT contribution be deposited? Can it just be deposited into an account designated for the VAT contributions and then document the intention to do the conversion on paper? Simple as that? Or do we need to make the deposit to the PS account and literally transfer it to the VAT account? Have a definitive trail? Thanks
  4. Simple questions for a cheat sheet I am making.... If a participant makes ROTH deferrals, that money has its own 5 year clock... Yes? If a participant continues each year to make ROTH deferrals, does that new money use the original clock start date? If a participant makes an in-plan ROTH conversion, I know that has its own start date. And every time they do an in-plan ROTH conversion the conversion gets its own start date. Here are the questions... all in-Plan ROTH conversions need to be in their own investment account... That account can be on paper... correct? My system will track it, that's all that matters, correct? Thanks
  5. I feel it is easier for me to efile the form using my credentials. Similar to AC's process, the 5500 is sent to the client along with an efile authorization form. It allows me to have my finger on the pulse, to know exactly who hasn't filed yet in real time. I have only 1 client to whom I send a link and that is done way back in April. He is quick to respond and he gets it done. I would be nervous as heck if I was this close to the deadline and relied on the client to get the return filed by 10/15. My 2 cents
  6. In my plan design I always put in that vesting does not apply when someone dies or becomes disabled. How is this applied if the employee terminates, the balance is left in the plan and then they die? I bumped the vesting up to 100%. Am I correct?
  7. Thanks So what I gather is that Uncle Sam will get his taxes for each year. He allows you to push it off for the first year but then you get hit twice the second year. After that it's year to year.
  8. Bob was born 3/1/1953 He turns 72 after December 31, 2022 therefore his RMD age is now 73 He turns 73 on 3/1/2026... he needs to take a 2026 RMD He can put off his 1st RMD payment as long as it is paid by April 1 of the following year, 4/1/2027. Q/ This payment he makes on or before 4/1/2027 represents the 2026 RMD based on his 12/31/2025 year end balance... correct? OR; is the deal he can put off his 1st RMD payment until 2027, the amount of the RMD is based on the 2026 YE Balance, but the catch is he must take it by 4/1 What I struggle with is if he puts off his 1st RMD (the 2026 RMD based on 2025 YE Bal) until 4/1/27 (the following year) and then he needs to take another one for 2027 based on the 2026 YE Bal, he is going to have 2 RMD payments hitting his personal account in 2027... a lot of taxes to come up with. Am I overthinking this?
  9. This is a year by year application... If only EE deferrals and SH match, no NEC in 2024, then no sweating a TH requirement? I like to design a plan as simple as possible... not going to have all kinds of different kookie hour requirements. Otherwise Excludable employees... Always makes me think hard to get it right. I need a good publication that will explain clearly and simply this group of employees and how they affect testing. In the end does it come down to the plan design?
  10. A SH match contribution is not dependent on hours of service... correct? if an employee is eligible to defer then they will receive a SH Match ...period. With regards to eligibility, it's only for the NEC and EE contributions that you could have in the design an hour requirement... right? With regards to TH, a plan that has no NEC contribution in the design is exempt from TH ... correct?
  11. Thank you. Ya, doesn't make sense for one company to pay another company's contributions. And they are not filing a joint return. Looking at your responses I should have thought of that.
  12. I have a new plan, everyone is part time. It's a SH Match. To be eligible to defer you only need to work for the company for 6 months, no hour requirement. CAN the SH eligibility have a hour requirement? will that screw everything up? My ADP test?
  13. In the situation where you have a control group that use one plan.... It seams to reason that each company pays the contribution required for it's own employees... right? I'm talking a straight forward 3% SHNEC. Can Company-A pay Company-B's 3% SHNEC? (curious with this question) Just need confirmation, thanks
  14. I have 4 missing participants with the following balances: $95.76 $52.07 $14.90 $39.56 We use Penchecks to process our 1099-Rs and we also pull the distribution fee that we charge from the participant's distribution. After all distribution expenses are deducted each of these payouts will have a negative balance. Can I zero these accounts out with expenses? or do I need to open missing person IRAs and get the expenses somewhere else?
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