BG5150 created a topic in Distributions and Loans, Other than QDROs
"Former employee left in 2019,turned 70.5 in 2020. Her first RMD was for 2020 but it was suspended. Initially, she would have been required to take that one by 4/1/21. But since she didn't have to take it, the 2021 RMD will be her 'first.' Does she have until 4/1/22? Or is is due by 12/31/21?"
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Jakyasar created a topic in Retirement Plans in General
"Please ignore any testing other than deduction. Assume a DB/DC combo plan. DC is 401k deferral and profit sharing only. Plans are not top heavy and also not covered by PBGC. In the DC plan, have a bunch on HCE's deferring only. To determine the 6% limit (or 31% combo limit), are the compensation amounts to the HCEs included? One scenario: include them in the DB. Another scenario: exclude them from DB."
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Jason Grant created a topic in 401(k) Plans
"Owner (age 40) owns 20% of a real estate firm (no qualified plan to speak of). The other owners are parents (65%) and someone else unrelated (15%). I have been told that all of the sales commissions are paid to the individuals (about 50 of them) and they are reported as income on Form 1099. The CPA would like to set up a SEP with the 40-year-old above. I have been told there is no management function here. I don't think this passes the sniff test. Agree?"
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Doogan created a topic in SEP, SARSEP and SIMPLE Plans
"I have some employees who elected to participate in my plan this year who are per diem. Their longevity and income over 2 prior years made them eligible. However I am seeing recently that some employees might not work for a couple of weeks at a time. My payroll company is accruing their contributions and plans to withhold on their next paychecks. Because it's an employer-sponsored plan, they're refusing to give me any guidance. They are saying they will do whatever I tell them. Given the workforce I employ, withholding 4-5 weeks of accrued contributions, even though it will go into their plan, will be a large hit to the employees. I suspect they will not be happy about it. Trying to get ahead of this. Appreciate any insight."
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SKC created a topic in Defined Benefit Plans, Including Cash Balance
"Company deposits $250k during 2020 to its DB plan, which is lower than the maximum deductible amount. Can it deduct $150K in 2020, and save the remaining $100K to be deposited and deducted in 2021?"
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SHARON M. created a topic in 401(k) Plans
"Does Code 4 on the Form 1099-R qualify for the coronavirus tax relief for tax year 2020?"
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Zooey72 created a topic in Retirement Plans in General
"FICA is 6.2%, which is matched by your employer who also gives the government 6.2%. Those numbers work well when applied to a 401k calculator to do the math on how much the government actually steals from you in the sham ponzi scheme that is Social Security. Using the calculator at the URL shown below, I put in the following scenario: 19 year old making 20k a year, who has 6.2% taken out of his paycheck that is matched by his employer who also takes out 6.2%. This young person does not go on to higher education, and sticks with this job his entire working life making a modest 2% raise per year. Through his lifetime the market has delivered on average a 7% modest return. When this young person becomes an old person, had the money been invested instead of stolen by the government he would be a millionare. Instead, he will probably have to work until 71 just to be
able to keep alive. Yeah, I want these people running health care too! https://www.aarp.org/work/retirement-planning/401k_calculator.html "
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reader created a topic in 401(k) Plans
"If someone is overpaid from a payroll perspective, and it causes an overpayment on a deferral and a match, does the overpayment for both need to be put into a forfeiture/suspense account? Or can they be paid back to the company due to a 'mistake of fact'?"
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Peter Gulia created a topic in Plan Document Amendments
"Many retirement plans, in provisions for an involuntary distribution needed for a plan to meet a tax-qualification condition under Internal Revenue Code § 401(a)(9), define the required beginning date (with some variations) as April 1 of the calendar year following the later of the calendar year in which the participant attains age 70½, or the calendar year in which the participant retires. I suspects that many plan sponsors, if not using a form document, might prefer to have the document provide the latest age or the date that does not tax-disqualify the plan for failing to meet § 401(a)(9). For IRS-preapproved documents of the cycle now or soon to be presented to users, are you changing 70½ to 72? Do some avoid stating a specific age, instead referring to § 401(a)(9)(C)? Or does a document not change anything about this
point?"
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Bill Presson created a topic in How to Use the Message Boards (a.k.a. Forums)
"I would have sworn there was an option to mute someone but I cannot find it. Maybe it never existed?"
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