Search found 254 matches

Return to advanced search

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: 42
Views: 2353

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: 42
Views: 2353

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: 42
Views: 2353

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: 42
Views: 2353

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: 42
Views: 2353

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: 42
Views: 2353

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: 42
Views: 2353

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: 42
Views: 2353

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: 42
Views: 2353

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: 807

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: 1061

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: 734

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: 415

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: 1327

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: 1327

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: 1327

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: 1327

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: 1327

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: 416

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: 1327

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: 685

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: 729

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: 431

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: 431

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: 729

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: 573

Re: Hardship Withdrawal From 401K/Profit Sharing

You said there's a 'nonelective safe harbor' contribution. Unless there's a mistake in terminology, that means the participant gets at least 3% of pay from the employer. Employee contribution is not required. Now there could be additional matching based on deferrals, which would be lost. Profit shar...
by mah001
Sat Jul 12, 2014 9:04 pm
 
Forum: Investing - Theory, News & General
Topic: Hardship Withdrawal From 401K/Profit Sharing
Replies: 12
Views: 1605

Re: Money Purchase to 401k

You should be aware of 2 main ways to proceed, when leaving MPPP for 401(k). That is, will the MPPP be terminated? If yes, every participant will have a chance to access his/her funds and can roll/transfer it to an Ira or to the new qualified plan or can spend it/use it to go work somewhere else. If...
by mah001
Sat Jul 12, 2014 6:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Money Purchase to 401k
Replies: 5
Views: 723

Re: Hardship Withdrawal From 401K/Profit Sharing

I agree a loan is better if it's feasible. Part of hardship requirements is to consider a possible loan first, unless doing so increases the hardship. I've never heard of a plan requiring a 6 month suspension of elective deferrals following a loan, but it's a requirement following a hardship distrib...
by mah001
Sat Jul 12, 2014 5:02 pm
 
Forum: Investing - Theory, News & General
Topic: Hardship Withdrawal From 401K/Profit Sharing
Replies: 12
Views: 1605

Re: Hardship Withdrawal From 401K/Profit Sharing

Suspending deferrals for at least 6 months is currently an IRS requirement. See Publication 7335, last paragragh of item VII b.
by mah001
Fri Jul 11, 2014 9:30 am
 
Forum: Investing - Theory, News & General
Topic: Hardship Withdrawal From 401K/Profit Sharing
Replies: 12
Views: 1605

Re: Inservice distribution 403b

"that" refers to what you said.
by mah001
Thu Jul 10, 2014 5:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inservice distribution 403b
Replies: 14
Views: 485

Re: Inservice distribution 403b

Retiredjg, that's pretty much what the IRS regulation section 1.403(b)-6 says---- except pre 1/1/89 elective deferrals aren't tied to 59 1/2 except a participant can get a sooner distribution if he dies, is disabled, has a hardship, or has a severance of employment. See in particular 1.403(b)-6(d), ...
by mah001
Thu Jul 10, 2014 5:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inservice distribution 403b
Replies: 14
Views: 485

Re: Is my SIMPLE IRA charging a reasonable fee?

I find that reading the Internal Revenue Bulletin 3 column version of things somehow makes these IRS pronouncements easier to take in. On page 32, at Q and A J-1 it says that not only can you do a transfer but the transfer must be done "without cost" to the employee. See Example 1 of q and...
by mah001
Wed Jul 09, 2014 7:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Is my SIMPLE IRA charging a reasonable fee?
Replies: 15
Views: 1259

Re: Is my SIMPLE IRA charging a reasonable fee?

Vanguard's description for 'participant' is misleading. Simple Ira statute is at IRC section 408(p). 408(p)(4) speaks of employees eligible to participate, which include the owner/employee and others. The first sentence of 408(p) says a SIMPLE Ira is an individual retirement plan. This means the emp...
by mah001
Tue Jul 08, 2014 9:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is my SIMPLE IRA charging a reasonable fee?
Replies: 15
Views: 1259

Re: Is my SIMPLE IRA charging a reasonable fee?

You can open a different SIMPLE Ira account anytime and do a transfer anytime. See Notice 98-4, question and answer I-3 and I-4.
by mah001
Tue Jul 08, 2014 7:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is my SIMPLE IRA charging a reasonable fee?
Replies: 15
Views: 1259

Re: rmds [Required Minimum Distributions]

As alluded to by a couple of people above, the employer can be the biggest wild card in your timing plans. Hopefully they will be forthcoming and accommodating in telling you what to expect as far as the time frame and manner of distributions. Distributions may be fairly quick in general, but there ...
by mah001
Mon Jul 07, 2014 4:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: rmds [Required Minimum Distributions]
Replies: 10
Views: 1141

Re: Re-hired at firm, given incorrect 401k info

Cursory reading of the pertinent parts of Revenue Procedure 2013-12 (the 176 page IRS drop file version) suggests that you are due 50% of the Average Deferral Percentage for your group for half the plan year, your group being highly compensated or non highly compensated. Presumably all employees con...
by mah001
Thu Jul 03, 2014 7:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Re-hired at firm, given incorrect 401k info
Replies: 27
Views: 2298

Re: Re-hired at firm, given incorrect 401k info

The SUmmary Plan Description won't have the details covering re-entry into the plan. You might try to frame the situation something like this: We're all in this together trying to follow these complicated rules. The plan probably qualifies for self correction under Rev. Proc. 2013-12. Is self correc...
by mah001
Tue Jul 01, 2014 8:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Re-hired at firm, given incorrect 401k info
Replies: 27
Views: 2298

Re: Solo 401 K questions

In order to contribute a total of $104K, you need either to open a defined benefit plan or pay at least $276K total salary for you + your wife together. Check: $276K @25% maximum = $69,000................plus $35,000 elective deferrals equals $104,000.
by mah001
Sun Jun 29, 2014 11:50 am
 
Forum: Personal Finance (Not Investing)
Topic: Solo 401 K questions
Replies: 11
Views: 895

Re: Profit Sharing 401k AND an Individual 401k?

You're limited to $17,500 Roth-k in either case. In the solo-k can do the employer ctbn. on an after tax basis, if the plan allows. If your job #1 plan situation is flexible enough to still designate the ctbns. to line up that way, go for it. On the other hand I'd be disinclined to pursue it if the ...
by mah001
Tue Jun 24, 2014 10:41 am
 
Forum: Personal Finance (Not Investing)
Topic: Profit Sharing 401k AND an Individual 401k?
Replies: 13
Views: 521

Re: Profit Sharing 401k AND an Individual 401k?

Kaptan, Doc could still have elective deferral space left if earned $208K on w-2 or equivalent self employment from first employment/other job @ 25% (or possible but improbable more than 25%) profit-sharing contribution; i.e. $52,000 profit-sharing at other job. In other words all of that person's $...
by mah001
Tue Jun 24, 2014 9:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Profit Sharing 401k AND an Individual 401k?
Replies: 13
Views: 521

Re: Profit Sharing 401k AND an Individual 401k?

Based on facts given, it sounds like you're good to go on the 20%. The $52,000 limit is per unrelated employer. Unrelated means the two businesses do not comprise a controlled group or an affiliated service group. Controlled group, IRC sec. 414(b) and (c) requires 80% or more ownership in common by ...
by mah001
Tue Jun 24, 2014 9:32 am
 
Forum: Personal Finance (Not Investing)
Topic: Profit Sharing 401k AND an Individual 401k?
Replies: 13
Views: 521

Re: SEP and Sole Proprietor Max Compensation

Ballparking $318K less about $12,000 that's half the SE tax less $51K for the contribution itself yields about $255K, the 2013 compensation limit under 401(a)(17). Also see IRC section 401(c)(2)(A)(v) ----self employment income accounts for contributions deducted under section 404-------and 401(c)(2...
by mah001
Mon Jun 23, 2014 5:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: SEP and Sole Proprietor Max Compensation
Replies: 13
Views: 742

Re: SEP and Sole Proprietor Max Compensation

re: "....thinking of starting one next year."

Is that one a c-corp or a DB plan?
by mah001
Mon Jun 23, 2014 9:01 am
 
Forum: Personal Finance (Not Investing)
Topic: SEP and Sole Proprietor Max Compensation
Replies: 13
Views: 742

Re: SEP and Sole Proprietor Max Compensation

You need to remember the $255,000 for a self employed person is the remainder of your Schedule C line 31 net income after you've subtracted half the SE tax and the SEP contribution itself, the $51,000. So you actually need around $266,000 on line 31 to max the SEP. A person making about $266,000 wil...
by mah001
Sun Jun 22, 2014 9:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: SEP and Sole Proprietor Max Compensation
Replies: 13
Views: 742

Re: EmergDoc's link, #6: 2nd that emotion

The 10% "additional income tax" under IRC sec. 72(t) has hit many people like a bolt from the blue. The rules can become complex quickly, with IRA type accounts offering different exemptions compared to "qualified plans." Many people could have avoided being subject to the penalt...
by mah001
Tue Jun 17, 2014 12:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Early retirement gotchas
Replies: 28
Views: 5384

Re: IRC paragraph 411(a)(11)

says the plan participant must consent to a distribution that's more than $5,000. See Alert Guidelines Explanation #4, Item IIe. I agree with what's been said and would add that you should obtain an entire copy of the plan. Basically, you have the right to keep it there until required minimum distri...
by mah001
Sat Jun 14, 2014 6:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Time limit on 401k Rollover?
Replies: 5
Views: 289

Re: Retirement Planning Questions

Be aware whether your defined benefit plan is integrated with social security. This concept is also known as permitted disparity and it enables employer to reduce or offset the plan benefit by accounting for employee's social security benefit. See for example IRS db lrm on permitted disparity and co...
by mah001
Wed Jun 11, 2014 8:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning Questions
Replies: 16
Views: 2198

Re: Complicated 401(k) question

The $17,500 are not valid deferrals, which must be taken from the paycheck of the employee of the plan sponsor. That's a basic spec found at the beginning of IRC subsection 401(k) and 401(a).
by mah001
Mon Jun 09, 2014 11:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Complicated 401(k) question
Replies: 11
Views: 1343
Next

Return to advanced search