Basically

Never terminated, just died December 2021. (12/22/21 I'm told) Because she died would she be considered terminated as of her date of death? and as such be required to take a 2021 RMD based on her 2020 year end balance? I can see the beneficiary being required to take a 2022 RMD based on her 2021 balance.

So an employee who was never required to take an RMD, if they die then the RMD requirement will kick in? The beneficiary will be required to take it until the funds are distributed? If so, when? Beginning the following year? The year they died? This participant died in December 2021. Appreciate your help.

I have never heard of this situation. A full time employee old enough to need an RMD but not required to take one because she isn't an owner (just an employee) died in December 2021. Technically she wasn't employed as of her date of death. That wouldn't kick in that she needed to take an RMD for 2021 based on her 2020 balance, would it? Maybe the short question to ask is, do deceased plan participants (who have not been paid out yet) need to take RMDs? I guess technically they still aren't owners so no? I just read that "once a participant starts taking an RMD they must continue taking one, even after death". The twist is that this participant was never required to take one due to the fact that they were an employee and not an owner. Would that mean that her account is not required to distribute an RMD for 2021 because she was just an employee? Am I answering my own question?

A Dr. left a practice and started his own. He rolled his pension into a new plan established by his new practice. This money would be an unrelated rollover, correct? He promptly took a $40K loan. Made payments. COVID comes and he suspended his payments. He forgot to re-start his payments so now the loan is in default. If I am correct and the money the loan was taken from was his rollover account, can't we just distribute the remaining balance, issue a 1099-R and be done? Would it be an offset? Dr. Loanshark is only 55, if that makes a difference.

Thanks for the reply, sorry for disappearing. I will look up if Massachusetts requires withholding.

So this single member plan paid out the RMD for 2022 today but did not withhold the fed and state taxes. The financial advisor is saying..."no harm no foul... just put on the 1099-R no withholding and the participant will be responsible for the taxes outside the plan". He said that "the CPA will prepare some tax payment vouchers and remit the funds". Soooo... will there be a problem? is this ok? Thanks

Thanks so much

So he has to fix It's a small heating oil company, 5 employees total, and everyone is participating. The owner is happy to pull the contribution because this burner tech has burnt him by quitting after the owner went over and above to accommodate him. At the same time he doesn't want the terminated employee to spread bad blood. The owner is ok with paying the 20% vesting ($1,600) to just make him go away. Can't leave it alone?

A plan sponsor provided a hire date that was actually months before the employee was actually hired. As a result the employee was included in the profit sharing contribution calculation. A contribution was made on the employee's behalf. This is a straight PS plan, not a 401(k). Do we have to honor the contribution, or actually, do we have to take it away ? Thanks

I'm pretty sure that is how it is CuseFan but I will be sure to check. Thank you

Thanks!

I have a small plan that has a couple of companies, a control group. The owner of course earns compensation from each company. When calculating the contribution the compensation I would use would be the total he earned from all companies, correct? As I write this it seams like a no brainer but I just want to be clear.

The plan is TH either way so TH minimums are always made. I was just curious. I'll have to ask them to be specific so I can make sure I have it correct. Cross my "t's", dot my "i's". Just to be clear... Un-Related: - Rollover from an unrelated plan someone belonged to before this plan - Rollover from IRA? in essence, a rollover from anything that is not directly related to the plan being rolled into.

That is what I was wondering.

If I have a plan and the 2 owners and only HCE employees have rollover money in the plan, do I count their rollover balances when determining how top heavy the plan is? I would think not.

Ahh... yes. Goes to show you can be looking at something forever and just overlook a simple mistake. A second set of eyes is worth its weight in gold. I made the change in my SS and indeed I came up with $23,226.56 which is what my client came up with. Thank you both for being my second set of eyes!

A client is paid on a K-1. Her line 14a SE income is 124,961. She and I are coming up with a different result. Here is my work: 142,500 Current year TWB 124,961 K-1 SE Income 115,401.48 1402(a)(12) Deduction (.9235) 7,747.58 FICA (6.2%) paid up to TWB 1,673.32 MED (1.45%) 9,420.90 Total SE Tax 115,540.10 K-1 SE Income - SE Tax 25 Desired Cont % 92,432.08 Adjusted Comp (115,540.10/(25%)+1) 23,108.02 Contribution (25% of Adjust Comp) Calculation Check 92,432.08 Adjusted Compensation 9,420.90 Total SE Taxes 23,108.02 Contribution 124,961.00 K-1 SE Income Am I good?

EZ Eligible ? perfect!

I looked, couldn't find the answer. For a business to be eligible to file an EZ can the business have employees but none of them are eligible due to the hour requirement? Case in point, summer camp where counselors all work less than 1,000 hours. Only husband and wife owners work 1,000+ so only husband and wife are participants. Thanks

I like answers like that. Thanks!

I read another post where I asked about an RMD for a non owner with no attribution. John did ask the above question. Sooo, I'm going with attribution does matter and I'm going to assume the wife is required to take an RMD due to her being an owner through attribution.

I know that a 5% or better owner must take an RMD when they turn 72 even if they are still working. Is a wife also required to take her RMD even if still working? Do attribution rules require her to take an RMD once she becomes RMD age even if she is still working?

Remember, the deferral limit (402g) is a personal limit. Regardless of how many pension plans someone is a participant in the amount they defer into all of them combined can not exceed their personal 402g limit. As BG stated, that same participant can be involved in multiple plans and each employer can make a contribution on their behalf based on compensation earned up to that plan's 415 limit. * don't forget, if one guy has multiple side gigs, you need to consider them all as one gig because of control group rules

Husband is the owner... and he said he is a C corp. Final question... different client but on the same subject.. Let's say a single member business owner earns $25K (a side gig). He's 52 so he is eligible to make a catchup deferral He maxes out his deferrals - 19,500 He wants to max out his ER - 6,250 This adds up to 25,750. Can he categorize the added 750 as "catchup deferral"? Defer 18,750 Catchup defer 750 Total defer 19,500

Got it, thanks. That is the only requirement... each simply must get some of it (and as long as what each one gets doesn't exceed the annual additions limit)