Basically

WDIK... would you confirm the following: Client needed a RMD dist for 2004... 10/31 PY First RMD would be for 2004 and would be based on 10/31/03 balance due on 4/1/05 2nd RMD would be for 2005 based on 10/31/04 balance due on 12/31/05 Correct?

Excellent, Thank you. I was reading 401(a )(9) and must have skimmed past that.

Client is an October 31 fiscal year end plan... When calculating the RMD, I can use the plan year end balance, correct? Do not have to determine what is in the plan on December 31.

No one? A Canadian citizen owns a sole proprietorship here in the US... no reason why he cant have a plan.. right? if he pays taxes... I know, its a basic question... but a supposed 'tax expert' has told someone it can't be done... that a Solo plan can not do this. He threw out "non-resident alien" as a reason... I told him that that is simply an eligibility issue and if a plan wanted to exclude non-resident aliens it can... but it doesnt have to. Anything?

I have a financial advisor who has a Canadian client... one man show. He wants to establish a Solo 401K plan. He (the client) earns $ here in the states from US companies. I told him that the Canadian client can establish a Solo ... he pays US taxes... why not? Please, any thoughts would be great.. and any rulings or other info would be greatly appreciated!

Straight forward question... Husband and wife business... want to open an individual 401K plan. Were thinking of also employing a child. Q/ If they employ the child they will have to file a 5500, not EZ, correct? (EZ instructions state "owner, spouse, partner, spouse of partner". Adding a child constitutes an "Employee other than the owner") Q/ The child will be considered an HCE due to attribution... so testing should pass no problems, correct? Thanks!

Thanks.....

I have never needed to complete a 990T... I may be needing one. Is there a site.. or some literature that explains these forms (besides the instructions) and how to complete them for pensions.. an "Idiots" guide? Thanks!

Senior Settlements is what this post is all about... I should have mentioned it from the start. That is the term I was given. The LLC will invest in these senior settlements. The plan participant would invest in the LLC. What if the LLC grouped say 2 or more of these settlements, called them "SS Group 2" and the client invested into the SS Group 2 as a limited partner. The investment wouldnt be in the LLC but rather the investment... SS Group 2. Would that make it a cleaner investment? Now I am not saying it is a good investment or a bad one.. but, if someone wanted to take the chance and invest in this type of investment, who is to stop them? This person has asked me if the investment is allowed in a pension. I have seen precious metal investments that fell flat... even stocks. Investing is a gamble. If there is a black and white answer pointing to no, then I will convey that to this financial person. My experience, exposure, knowledge is simply not there regarding this subject. Thanks for everyones help.

Viatical Settlements... sounds like what this investment is. Not an illegal investment... but very speculative. I am not a financial advisor. I have purposly kept away from the investments. I will pass on this information to the ones who have asked me if these investments are suitable. Thank you for the lead to the viatical information. Exactly why I come to Benefitslink... to bounce quesitons off of everyone. Some very knowledgable people here!

No debt financing... situation is this... An LLC willbe established and it will have 2 general partners *Pensions and other investors will become limited partners *the LLC will use the $ invested to purchase senior life settlements *when the settlements mature profits and return of income will be paid to the limited partners * The pension investors will be sole participant plans or participants with segregated accounts My client will be the plan. The plan will not be apart of managing the LLC, simply a monitary investment. I am certainly no expert ... hence I am asking what people know and think

Can you explain...

CPA called me.. has a client that wants to invest in the following type of investment: Plan invests $200K into a LLC and becomes a limited partner. LLC purchases senior life settlements. Plan will receive a K-1... only participant in the plan is the sponsor... no other participants. There is no reason this investment will not fly.. correct? Am I missing anything. It is simply a limited partnership investment. NO risk to other participant $$ since there are no other participants. Thanks for everyone's thoughts!

ok... the plan is a PS... my mistake. I guess all my badgering convinced him to change it. Soooo.... If he transferrs stock into the plan will that work out fine? and , how do we value it? end of the day NAV?

Just found out... What the situation is is... if he liquidates the stock it is considered a "trade"... if he transferrs the stock it is not. If he makes a "trade" then i guess it will limited the number of future "trades" he can do. I have to ask him one question... I will ask him if the stock that he is "transferring" stock in a company which he is a member of the board, a director.... if so... is that a PT? One fact to keep in mind... he is the only member of the plan, no EEs, no other participants. Thanks!

I did find a post here... in it the plan was a DB plan and the answer was NO, it would have been a PT. The plan I am concerned with is a MP... I have been trying to amend it for years to a PS... he is simply non responsive to the idea. He is a very smart guy.... I am sure if he could liquidate he would... maybe there are fees involved or some other reasons. To sum it all up... A 401 or a straight PS plan and it can be done? Want to know for future questions. Thanks!

A client wants to pay his contribution in "Kind"... wants to transfer stock to the plan to cover his 2004 employer contribution receivable. Is this fine? If so, what documentation needs to be in place to a future audit? Thanks!

What is the benefit of more than 2 rate groups.. nothing? 2 Doc's in group 1... $200K+ each 1 younger Doc in group 2... $200K+ all the rest NHCEs in group 3

When you have 3 rate groups, how does that affect gateways? Thanks!

So it is simply a design issue... has the plan included in-service and hardship distributions in the document. And only PS plans. Thanks

Client has a New Comp plan... has an EE who wants a hardship dist. Are hardship distributions only allowed from K plans?

I was contacted by a co-trustee who can not find the document of her husband's plan. American funds will not allow her to gain access to the funds because they do not have her listed as a trustee. They want to see the doc. She is not a client (not yet)... What are her options? Plan was established in 1998 and he was the only participant.... FYI

Dsyrett... there is a place online called "instant replay" or something like that. It allows season ticket holders to sell their tickets if they are not going to be around for the game. I think you need to register through the Red Sox site and is done through the Red Sox organization ( I think)... did you try that? What is sad is that a family that is not raking in the cabbage cant afford to take their children to a baseball game. Grand Stand tickets... $75 each? Outrageous! I remember going to the game and buying grand stand tix for $6 .... and arriving the day of the game to buy them. I understand that it is a business. I guess I long for the good ol'days. What a game last night! I watched it to the end... walk off home run by the error stricken Kevin Millar. What a finish! Oh, and I do have to give credit to Byrnes for catching Nixon's slicer in left field... fabulous catch! That will make the the weeks highlites on all the sports channels. ok.. back to work.

I came to your same conclusion.. but was told that he is a great SS. Theo the wonder boy has done good so far. Lets see how he turns out as the season progresses.... (I liked Cabrera !) do I see another rivalry? Tampa Bay? Bench emptying innings and pitches thrown at peoples heads? who said baseball is boring!

no.. applications applied over the phone.