Basically

The plan sponsor is asking... and as I read his email closely he's got to be off with his thoughts. Full disclosure, I think he is asking a hypothetical question. He feels he has a good price for the bond from Hartford and is worried they won't go any higher. IDK why they wouldn't. I'm going to tell him he just needs to have one bond... just keep it simple. sorry to waste any time.

He is asking if he can have 2 concurrent policies that add up to the bond requirement.

Client has a bond but needs to increase coverage. He is asking.... "to meet the coverage requirement does it matter if I have 2 bonds that in total meet or exceed the coverage requirement?" I don't see a problem... but thought I would ask

Yes the plan is terminating. Thank you for your reply

This client sold his business, it was absorbed by a larger company. Almost all of the employees went to work for the new owner. Many employees are rolling their pension accounts into the new employer's plan, some into IRAs. One employee has a loan and would like to "cancel it out" and only roll over her tangible assets to the new employer's plan. Am I missing anything... any reason she can't do this? Split her distribution into 2 parts, rollover to new plan and cash distribute her loan as a taxable distribution? Thanks

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.

Deceased participant... Spouse is the primary beneficiary... Can she waive her right as the primary thus passing the benefit onto the secondary beneficiaries? (the kids)

Thanks... was hoping for an exception but it is what it is. The CPA messed up... not my client, not my problem.

Just some clarification please... If an owner participant dies before the year end but after the RBD (I was told he is way past 72), the RMD should have been taken before 12/31... correct? Thanks

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

Client bonused himself $28,000 to max out his deferral He reported on his W2 $28K in box 12 and coded it D I told him he exceeded the 402g limit He withheld taxes from the $28K and deposited $25,858 into the plan. He wants to say that the extra $2K is a voluntary contribution. He can do this (doesn't exceed 415 limit) but it needs to be in Box 14... correct? And technically he needs to actually deposit $28,000... correct? In the end he needs to amend the W2 and make whole the $28K in the plan... correct?

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.

Perfect... thanks!

I have a single member plan which is funded solely by ROTH money. His CPA told him he didn't need to take an RMD because it was ROTH money. In the case of an IRA an RMD is not required as long as the owner is alive, so that is good advice for his IRA accounts. But I have read that when it comes to a qualified plan it doesn't matter if it is ROTH money or pre-tax money... an RMD must be taken. Right so far? That said, how would a ROTH RMD be taxed? It wouldn't? Thanks

No one huh.... So... when a plan pays expenses for TPA work or to the financial advisor... does the plan not need to issue a 1099?

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.

I was asked by a financial advisor of a single member client just now: "should the plan issue a 1099-NEC to a person who did some work on the property the plan owns?" Thinking it through I would say yes. I would also guess that whatever account pays the RE tax bills would be the account that issues the 1099-NEC. Anyone have a quick answer? Of course the 1099 was due yesterday. Thanks

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.