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DBSurber

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  1. I have read somewhere that if an employee is still working at age 70 1/2, the normal Required Beginning Date (RBD) for RMD's, not only can the RBD be delayed, but the employee can still make elective deferrals to their 403(b) under the same 402(g) contribution guidelines as any other employee. I have found numerous places on the net that confirm the ability to delay the RBD, but none that speak to ongoing contributions. My questions are as follows: 1) Can the elective deferrals continue? 2) For how long- any max age? even if still employed? 3) Does it have to be full time or can part timers also contribute? 4) Is there a maximum age at which the RMD's MUST begin, regardless of employment status? 5) 12/31/86 balances are not subject to RMD's until age 75. Is this also able to be delayed by continued employment? Thanks, Dan
  2. In the case where a client makes a nonperiodic, non rollover distribution from their 403(b) or 457(b), the mandatory 20% is normally applicable. We have a few clients with smaller accounts who wish to make distributions, but tell us that even with the amount of the distribution includable in income, they are still under the IRS threshhold for having to file a return. Therefore, they're asking that we do NOT withhold, as this will force them to file a return just to recoup the monies we withhold. Is it acceptable to comply with their request and NOT withhold? Please reply quickly, as we currently have 2 clients waiting for an answer and I couldn't find a specific reference to this situation in Tax Facts. thanks, Dan
  3. Over the past year, my company has had three instances where a 403(b) participant requests a distribution or surrender, and requests not to have taxes withheld because their earned income is under the threshhold for filing taxes. If their earned income plus the 403(b) distribution amount DO fall under the threshhold for being required to file a return, are we still required to withhold the mandatory 20%? thanks, Dan
  4. UCA '92 imposed mandatory 20% withholding on distributions from most qualified plans with a few exceptions. I need a definitive answer on whether a Participant can opt out of the mandatory withholding for a distribution due to unforeseeable emergency from a 457 governmental plan? Thanks.
  5. UCA '92 imposed mandatory 20% withholding on distributions from most qualified plans with a few exceptions. I need a definitive answer on whether a Participant can opt out of the mandatory withholding for a distribution due to unforseeable emergency from a 457 governmental plan? Thanks.
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