Search found 277 matches

Return to advanced search

Re: SEP IRA for Sole Propietorship + Simple IRA at W2 employ

spangler: I confirm by much the same logic the last sentence of your original post. LeeMKE is correct in that you can have SIMPLE Ira and 401(k) simultaneously........but not at a related employer. SIMPLE Ira uses an exclusive plan rule = the SIMPLE Ira is the only plan allowable for a given year at...
by mah001
Thu Oct 30, 2014 8:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: SEP IRA for Sole Propietorship + Simple IRA at W2 employer
Replies: 11
Views: 450

Re: Solo 401k - S Corp with Business Partners (Non-Spouse)

The one plan scenario is likely a better way to go. E-trade's answer might pose problems from the get-go. It depends on how the plan is worded. E-trade's plan would need to somehow exclude the other 2 partners, a twist I would not expect to be covered by these supposedly simpler plans. Additionally ...
by mah001
Sat Sep 27, 2014 6:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - S Corp with Business Partners (Non-Spouse)
Replies: 6
Views: 441

Re: Opening Solo 401(k) and Closing SEP-IRA

greetings from oxford england.....I still think you can start the 401k this year. I don't believe the 5305-sep uses the word "active" but merely says you cannot currently maintain another plan other than another sep. And I don't think "maintain" is defined anywhere....OK, the pro...
by mah001
Tue Sep 16, 2014 3:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Opening Solo 401(k) and Closing SEP-IRA
Replies: 10
Views: 849

Re: Opening Solo 401(k) and Closing SEP-IRA

You can open a solo-k for 2014. The active participant rule does not affect this; it has to do only with IRA deductibility.
by mah001
Mon Sep 15, 2014 5:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Opening Solo 401(k) and Closing SEP-IRA
Replies: 10
Views: 849

Re: Help Please: Retirement plan vs. Higher Salary

I too wonder at this unusual setup but do not necessarily question the legality. By making the election irrevocable, employer avoids creating a CODA (cash or deferred arrangement, like a 401(k)). Perhaps staff people are covered, or maybe their services are via a PEO that provides the requisite reti...
by mah001
Tue Sep 02, 2014 12:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Please: Retirement plan vs. Higher Salary
Replies: 35
Views: 3286

Re: Convincing an employer to offer after-tax 403b and more.

See TD 9340 (Tax Document), effective 7/26/07. This is the newer set of final regulations under section 1.403(b). There are a few pages of preliminary discussion, followed by the numbered regs, 1.403(b)-1, 1.403(b)-2 etc., each of which deals with a different 403(b) topic. The preliminary discussion...
by mah001
Sat Aug 30, 2014 12:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Convincing an employer to offer after-tax 403b and more...
Replies: 32
Views: 1274

Re: Does your employer still offer pensions to new hires?

I've heard that Form 5500 data is more readily available these days. Try freeerisa.com or the EBSA to look at employer filings for their plans, including defined benefit. Unsure of search parameters from there, for example can you search as simply as "ABC Co. Defined Benefit Plan?" See For...
by mah001
Sat Aug 30, 2014 12:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does your employer still offer pensions to new hires?
Replies: 54
Views: 3931

Re: Wiki revised - Employer Retirement Plan Overview

Payroll reduction IRAs aren't very common. Defined Benefit Plan text final sentence is confusing if the context is to compare DC vs. DB. In a DB plan, more precison (definition) occurs for the plan's output, aka the benefit. Less precision is available to the employer concerning the input, aka the c...
by mah001
Thu Aug 28, 2014 10:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Wiki revised - Employer Retirement Plan Overview
Replies: 6
Views: 770

Re: Help - my IRA got distributed without my instructions

Default withholding for a taxable IRA distribution is 10%. Distributee can make the % less (such as 0%) or more by filling out form W-4P before the distribution. Default withholding for a 401 and likely 403(b) taxable nonrolled distribution is 20%. Distributee can use form w-4p if she wishes to incr...
by mah001
Sat Aug 23, 2014 8:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help - my IRA got distributed without my instructions
Replies: 9
Views: 1102

Re: Self Employment, 401K and Backdoor Roth: A Viable Gamepl

A solo-k equivalent that allows for after tax employee contributions sounds doable to me. If the boilerplates (master and prototype, volume submitter) don't yet offer it, there's still an "individually designed plan." Such a plan might be referred to as individually designed by adding the ...
by mah001
Mon Aug 18, 2014 10:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Self Employment, 401K and Backdoor Roth: A Viable Gameplan?
Replies: 10
Views: 2408

Re: Automatic monthly SIMPLE IRA to Traditonal IRA transfer?

I would stay away from the word rollover and stick with trustee to trustee transfer. This type of transaction is 'non reportable;' American Funds isn't required to prepare any 1099-R forms. You, the Ira owner, never personally had possession of the funds. Document it as much as you can on your end, ...
by mah001
Sat Aug 16, 2014 12:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Automatic monthly SIMPLE IRA to Traditonal IRA transfer?
Replies: 5
Views: 359

Re: Can I open a Solo 401k plan with no income?

Extremely unlikely for a custodian to work up a sweat over incoming rollovers. Looking at Rev. Rul. 2014-9, situation 2, the administrator of the 401(k) plan (for a small plan this is often the employer) is implicitly or otherwise asserting it's a valid incoming rollover.
by mah001
Wed Aug 13, 2014 4:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can I open a Solo 401k plan with no income?
Replies: 15
Views: 1432

Re: Can I open a Solo 401k plan with no income?

Even when a plan is disqualified, the bark occasionally is worse than the bite. IRS consequences of a DQ: no employer or employee deduction for contributions; the plan funds become a taxable trust; any rollovers done during the DQ period are invalid rollovers. If these results are bearable in a give...
by mah001
Wed Aug 13, 2014 1:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can I open a Solo 401k plan with no income?
Replies: 15
Views: 1432

Re: Establishing a SEP - what about terminated employees?

SEP compensation is defined "...for the year." The permissible plan year ends are either 12/31 or the employer tax year end. Having a plan, followed by changing the plan year, results in a short plan year. If one wants to prorate, when for example a plan sponsoring business comes to an end...
by mah001
Thu Aug 07, 2014 2:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Establishing a SEP - what about terminated employees?
Replies: 19
Views: 929

Re: Establishing a SEP - what about terminated employees?

The code says the plan year can be the calendar year or can coincide with employer's tax year, if it is not the calendar year. I don't see anything about a short plan year except for the case where employer's tax year changes and plan already exists. SIMPLE Ira can be operated for 2014, with some co...
by mah001
Wed Aug 06, 2014 9:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Establishing a SEP - what about terminated employees?
Replies: 19
Views: 929

Re: Possible Rollover IRA after company purchased

As of a few years ago, all 403(b) plans, including governments and probably churches, must have a written plan. Look there first. Compare to regulations under section 1.403(b) from 2007 to see what's permissible. The very concept of plan termination for a 403(b) is new in the regs. If we're trending...
by mah001
Sun Aug 03, 2014 7:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Possible Rollover IRA after company purchased
Replies: 5
Views: 279

Re: Your 401k, u die, must beneficiary withdraw within 5 yea

As for the plan provision, I don't have top of head knowledge of its required adoption deadline; there might not be an amendment required for this unless it's actually possible in the plan. Effective in the plan's operation for plan years beginning in 2010.
by mah001
Thu Jul 31, 2014 3:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Your 401k, u die, must beneficiary withdraw within 5 years?
Replies: 20
Views: 2046

Re: Safe Harbor 401(k)

For the safe harbor notice specs, see Worksheet #12, Item X. h. and the attached Publication 7335 (Explanation #12), item X. h.

Note that CPA audit requirement comes from ERISA (DOL). In IRS eyes, any 5500 lacking only an audit is a complete filing.
by mah001
Thu Jul 31, 2014 11:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Safe Harbor 401(k)
Replies: 15
Views: 1069

Re: Safe Harbor 401(k)

It used to be and seems it continues to be that some plans don't provide the investment detail you seek. If a plan has more than 100 participants, a CPA audit report on the plan must be attached to the 5500. But if plan has less than 100 and plan offers a 'diversified' investment menu of at least 3 ...
by mah001
Thu Jul 31, 2014 9:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Safe Harbor 401(k)
Replies: 15
Views: 1069

Re: Your 401k, u die, must beneficiary withdraw within 5 yea

Looks like we're saying the 5 year rule does allow for rolling/stretching if distributee timely acts.
by mah001
Wed Jul 30, 2014 10:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Your 401k, u die, must beneficiary withdraw within 5 years?
Replies: 20
Views: 2046

Re: Your 401k, u die, must beneficiary withdraw within 5 yea

Plan must meet 401(a)(9) ---provide plan provision and then follow it. If plan's method is faster than it needed to be and beneficiary is taxed sooner than would have been possible, the plan is under no obligation to act differently. But if plan's distribution options include dollars that are not rm...
by mah001
Wed Jul 30, 2014 9:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Your 401k, u die, must beneficiary withdraw within 5 years?
Replies: 20
Views: 2046

Re: Your 401k, u die, must beneficiary withdraw within 5 yea

Try pub 6392, item II. e. for the rollover part.
Try pub 7004, item II b. for the rmd part.
There are cites, e.g. code and regs.
Gotta go to Broncos' practice.
by mah001
Wed Jul 30, 2014 8:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Your 401k, u die, must beneficiary withdraw within 5 years?
Replies: 20
Views: 2046

Re: state pension

Congressional Research Service says for those retiring in 2013, maximum PIA elimination is $395.50/mo. Not as much as I was guessing but likely increasing every year and worth understanding.
by mah001
Mon Jul 28, 2014 9:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

My point is that OP very possibly has little to no social security credit. He not only needs to check w-2 but to understand how government pension could impact an undisputedly real concept called PIA.
by mah001
Mon Jul 28, 2014 8:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

Public Law 98-21, title of section 113 contains ".....elimination of windfall.."
I did not think OP had been a fed. But until OP says otherwise, WEP can significantly impact him/her and should be considered.
by mah001
Mon Jul 28, 2014 8:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

What if OP does not wind up with 30 years of ss coverage? WEP might apply and put a big dent in the expected benefit. Everybody quotes pubs like they're gospel. if for no other reason pub 963 is extremely helpful near its beginning.......something to the effect that you can't use pubs to support you...
by mah001
Mon Jul 28, 2014 7:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

OP didn't say anything about working for feds. But let's say for grins the social security benefit due to OP will be reduced by $500 because of wep. Call me crazy; I'd want to know that as an aid to my retirement planning.
by mah001
Mon Jul 28, 2014 6:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

Based on facts given , WEP/GPO potentially impacts OP. Pub 963 is a potential resource for millions of workers with a question regarding the interaction of government employment and Social Security. You can lead herds of horses to water............
by mah001
Mon Jul 28, 2014 6:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

op's new job is with a university. I don't gamble, but chances are good op is a teacher/professor. And as a federal retiree affected by wep, my position is a person should get every separate pension For which i qualify. i got no ss benefit from feds but if i qualify for ss based on private employmen...
by mah001
Mon Jul 28, 2014 5:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

that's why op should call number listed for his state in the pub on section 218 agreements. double dip was used in a generic way to give a reason for wep/gpo legislation. my elders at work said back in mid 80's congress agreed too many people were receiving multiple generous pension benefits. op may...
by mah001
Mon Jul 28, 2014 4:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: state pension

State pension is likely to be stated in terms of nominal dollars. That is, 27 years from now it will still be $1,300. After you start to draw it, it may or may not increase via COLA. The plan can be amended to increase benefits, which looks unlikely in current times. Government plans are not covered...
by mah001
Mon Jul 28, 2014 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: state pension
Replies: 43
Views: 2739

Re: Redepositing unnecessary RMD's from 401K

Am assuming faux RMDs were substantially if not entirely taxable income. There's normally a 3 year statute of limitations on amending your 1040s. So even if you are able to amend 2011, 2012, and 2013 (but not the older years), is the issue still worth pursuing? Also realize you would be setting your...
by mah001
Mon Jul 28, 2014 11:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Redepositing unnecessary RMD's from 401K
Replies: 5
Views: 882

Re: 401k Failed Discrimination Testing- What Do I Do?

Excess contributions must be distributed within 2 1/2 months after end of plan year to avoid penalty tax on employer. It's 6 months if the plan uses automatic enrollment in the plan as a feature. x in the retirement plan box of w-2 is also based on plan year. So if py ends 6/30/14 and you have had a...
by mah001
Sat Jul 26, 2014 9:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401k Failed Discrimination Testing- What Do I Do?
Replies: 6
Views: 1117

Re: $250K reporting question for multiple Solo 401k plans

It does not matter if the EIN differs. It's still a controlled group with you owning 100% of each business, so the $250K is aggregated. Note it is possible for only one of the employers to sponsor multiple plans. Solo-k is a term having little or no significance in the government's rules. Maybe the ...
by mah001
Sat Jul 26, 2014 8:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: $250K reporting question for multiple Solo 401k plans
Replies: 7
Views: 844

Re: New job: HSA and Flex (FSA) same year...FSA limit?

1) HSA specs say you can't do both (concurrently). You're good to go with the FSA. 2) See if you can access a copy of the plan document (not the same as the summary plan description). I'm not finding an example of a plan provision for this. FSA guidance is mostly in the 2007 revised proposed regulat...
by mah001
Fri Jul 25, 2014 10:44 am
 
Forum: Personal Finance (Not Investing)
Topic: New job: HSA and Flex (FSA) same year...FSA limit?
Replies: 3
Views: 437

Re: SEP-IRA employer contributions fr/ personal account-prob

You need to understand that the Ira owner is a disqualified person. Once you have that, you should see a loan involving the 100% owned S Corp is a direct PT. You're correct, Peek involves facts that do not immediately resemble the current situation, such as the rollover/business startup (ROBS). But ...
by mah001
Fri Jul 25, 2014 9:33 am
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1421

Re: SEP-IRA employer contributions fr/ personal account-prob

Okay, where are we? Please forgive my lapse in manners. I continue to stick with the technical response. OP wanted to know 1) if it's a problem that previous SEP contributions were paid personally instead of by his S-corp; 2) OP's CPA, in whom he has 'limited confidence,' suggested using a note to m...
by mah001
Wed Jul 23, 2014 6:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1421

Re: SEP-IRA employer contributions fr/ personal account-prob

Jared and Alan obviously did not look up examples of indirect prohibited transactions. Why don't you do that before debunking my take on it? The interpretation of indirect loan is fairly strict. For starters, the SUBSTANCE of the CPA's idea still leaves the principal involved in a loan with the plan...
by mah001
Tue Jul 22, 2014 7:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1421

Re: SEP-IRA employer contributions fr/ personal account-prob

If corp tax return had a valid extension of time to file, then 2013 can still be fixed. Other than that, I don't see how to overcome IRC section 408(k)(3)(A), which has the employer (sponsor of plan) as the one who makes the contribution. The prior year contributions are nondeductible under 404(h)(1...
by mah001
Tue Jul 22, 2014 12:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1421

Re: SEP-IRA employer contributions fr/ personal account-prob

IRC 4975(c)(1)(B): ".....the term prohibited transaction means any direct or indirect lending of money or other extension of credit........between a plan and a disqualified person." The disqualified person here is the S corp (or brian2013, not sure which way to go), who has been deemed to ...
by mah001
Tue Jul 22, 2014 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1421

Re: Multiple Solo 401(k)s?

I agree it can't be done using facts given. But it could have been done if: the plan allows for investment in real estate; the plan purchased the condo from an unrelated party (arm's length transaction); the rental is passive and unrelated (avoid too much activeness, e.g. too much self fixing it up ...
by mah001
Tue Jul 22, 2014 10:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Multiple Solo 401(k)s?
Replies: 4
Views: 449

Re: SEP-IRA employer contributions fr/ personal account-prob

The CPA must be unaware of the concept 'indirect prohibited transaction,' which would make the entire ira immediately taxable. The good news is there would be no excise tax on the prohibited transaction.
by mah001
Mon Jul 21, 2014 10:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1421

Re: Should I open a solo 401k?

Retirement plan assets in IRA type accounts are shielded from creditors according to state law. Assets in a 401(a) account are shielded by federal 'exclusive benefit' rule of IRC section 401(a)(2) and 'nonalienation or assignment' under 401(a)(12). At least one of those clauses is explained in the I...
by mah001
Mon Jul 21, 2014 9:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I open a solo 401k?
Replies: 9
Views: 752

Re: Help with setting up Fidelity solo-401k

Don't know, but it's got to be better than 'created a pension plan.'
by mah001
Sat Jul 19, 2014 9:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with setting up Fidelity solo-401k
Replies: 14
Views: 887

Re: 401(a) and 401(k) and contribution limits

I agree with Duckie in that the old plan has no effect on the new but disagree on the why. The old is probably not a money purchase plan. Money purchase plans, where they still exist, are typically all employer contributed dollars with nothing from the employee. Congress defined elective deferrals a...
by mah001
Fri Jul 18, 2014 8:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(a) and 401(k) and contribution limits
Replies: 7
Views: 464

Re: 401(a) and 401(k) and contribution limits

Hate to disagree with Dutch, but the 401(a) likely does not affect the 403(b). Assume the new employment is not akin to a transfer, e.g. it's not a related state university/part of the same system. The old plan may have been a 414(h) 'pickup plan,' be it defined contribution or defined benefit. The ...
by mah001
Fri Jul 18, 2014 7:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(a) and 401(k) and contribution limits
Replies: 7
Views: 464

Re: Help with setting up Fidelity solo-401k

4. Don't need wife's name for affiliated employers, if there are none. That is, she's not doing business via another sole proprietorship, partnership, or corporation that is part of a controlled group and/or affiliated service group relationship with the employer (sole prop.) who's adopting the plan...
by mah001
Fri Jul 18, 2014 7:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with setting up Fidelity solo-401k
Replies: 14
Views: 887

Re: Small business 401k blues

Check the money purchase plan and trust documents. I'd think the plan would be able to buy annuities for your late partner's heirs. You should be able to do this regardless of whether the old plan terminates. If current custodian says it can't be done, that's another indicator it's time to switch pr...
by mah001
Wed Jul 16, 2014 10:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Small business 401k blues
Replies: 6
Views: 614
Next

Return to advanced search