Distribution and Withdrawal Questions

Required Minimum Distribution

feeds@yuku.com (tututaber) — Sat, 19 Jul 2008 15:21:48 GMT

Does someone who is over 70 1/2 but still an active employee need to a required minimum distribution? Or can the person defer it?

I'm getting conflicting answers when researching online.

homebuyer

feeds@yuku.com (grandma) — Thu, 17 Jul 2008 12:43:18 GMT

I am buying my first home and was told this is one of the reasons you can take out your 401K money with no penalties. How much if any of that is true? My financial advisor is tellinng me I have to take a loan, and then if I go elsewhere have to pay it back with taxes and penalties?

Pension Plan Distributions

feeds@yuku.com (MishyMKE) — Thu, 26 Jun 2008 13:50:43 GMT

Are participants allowed to choose a beneficiary other than a spouse in a Pension Plan? More specifically, can payouts be made upon participant death, to a Trust if the participant is not married? Most pension benefits appear to be paid only to spouses.

401K Survivor death payout

feeds@yuku.com (bdupes) — Thu, 26 Jun 2008 07:17:07 GMT

A friend's father died 10 years ago while she was a minor of 13. She was named as the beneficiary of the father's 401K. Her father and her mother were separated and she lived with her mother. Her mother had agreed and signed papers making the daughter the sole beneficiary of the 401K. At the time of his death, the father had no will. However, her step sister who was an adult contacted the father's place of employment and arranged the payout of the 401K...

ESOP and NUA

feeds@yuku.com (smhbcd) — Wed, 25 Jun 2008 10:47:29 GMT

I have a fairly strong understanding of NUA and ESOP but I can't determine whether there is a time limit to take advantage of NUA after you have left the job. My ESOP is still with my former employer's record keeper. I am interested in taking advantage of NUA. Is there a time frame to do this (i.e. within 1 year)? I have held off because the ESOP market value has dropped significantly and I would prefer to take advantage in the longer term.

How long does an employer have to distribute 401k funds

feeds@yuku.com (First2Ask) — Tue, 24 Jun 2008 16:12:33 GMT

I was under the impression they had 30 days from the end of the current fiscal quarter to return unpaid 401(k) funds to employees whose employment ended during that quarter. I am now being told that there is no legislation on this matter, and my search for the truth is distorted and fruitless.

My balance is not very high, I made more than the sum I am eligible for in 2 months of employment (or in some cases, a single income tax refund). This is not why I quit, but I definitey...

early withdrawal from 401k - options other than termination?

feeds@yuku.com (gquest) — Mon, 23 Jun 2008 12:46:35 GMT

I have an opportunity to make a real estate investment with my Father that would considerably change my future. Essentially it is buying into an existing holding he has that would result in equity to me of about $400k (over twice the current value of my 401k account) and include a substantial improvement in my monthly cash flow as well.

I recently used most of my liquidity to refinance my ARM mortgage in a declining market (stupid position to put myself in, I know). So, the only...

Early Withdrawal

feeds@yuku.com (TLM) — Sun, 22 Jun 2008 08:08:47 GMT

I am 57 years old and believe I will get lay-ed off this summer. I understand I can withdraw funds without penalty. But are there any restrictions on how much I can withdraw, are there % or dollar amount limitations? Also, do I need take equal payments or can I withdrawal X amount the first year and Y amount the second year?

Thanks TLM

Rollover to Trust after Death

feeds@yuku.com (Beliluk) — Fri, 20 Jun 2008 12:40:45 GMT

A plan participant recently died and had his trust as his primary beneficiary (he is divorced and kids are young). How does the rolloverwork? Can a trust hold an IRA and avoid the tax until payout to the children? Does there need to be an actual distribution to the trust, and then taxes paid to the IRS for this? The attorney asked if this was a "Look Through" Trust...what is that? Also, do you have a time limit on when you can take a distribution after an event like this?...

Strategy for working 70+ owner with a SIMPLE IRA

feeds@yuku.com (iweisman) — Wed, 11 Jun 2008 12:21:02 GMT

We are exploring a strategy for a small-business owner of a corporation with a SIMPLE IRA who now must take, and pay tax on, a Required Minimum Distribution, to stop having to take distributions. The plan would be to 1) divest enough shares so that he is a less than 5% owner, 2) close the SIMPLE, 3) open a 401(k), and 4) rollover the SIMPLE to the 401(k). Given that the client has already begun taking his RMD, is there a problem with this approach?

401k and taxes

feeds@yuku.com (donihealy) — Tue, 03 Jun 2008 11:41:22 GMT

I am 66 years old and wish to retire and remove all of my funds from my 401k.I am told that I have to pay the 20% tax right now.Is there any way I can delay this until tax time next year?

401K Withdrawal - Best Case Scenario

feeds@yuku.com (notarypilot) — Tue, 13 May 2008 09:23:20 GMT

Hi,

I'm in the process of leaving my job in the next few months. My finances require that I cash out some of the benefits I acquired as an employee through my firms 401K plan. I would like to know what financial arrangement would yield the most pre-tax money from cashing out my 401K plan.

Here are my questions:

If cashed out through company on resignation date - Would I be subject to immediate tax deduction since I am a departing...

Early retirement Distribution Options

feeds@yuku.com (JPWJr) — Sun, 11 May 2008 10:44:20 GMT

In the section of this website entitled Early Retirement Distribution Options (http://www.401khelpcenter.com/401k_education/Early_Dist_Options.html) the following condition is clearly cited as one of the necessary conditions for not being subject to the 10% early withdrawal penalty in the Leaving Your Job On or after Age 55 scenario:

"Second, you can only take money from the...

closing my 401k

feeds@yuku.com (bigt1313) — Sun, 11 May 2008 09:46:41 GMT

i am in real estate and i am very slow at work. i am in dire need of my 401k funds to pay bills and to just keep up with my life stlye, which is very conservative by the way. my employer tells me i have to either quit or be fired to close my account. well, i do not want to leave my job. what is up with that. do i have any other options. please help.

Subsequent distribution in a different tax year

feeds@yuku.com (sharie stuart) — Mon, 05 May 2008 12:29:26 GMT

What is the maximum length of time that you can honor a participants distribution election? For example if a participant received a distribution of their account back in November 2007 and now receives a residual contribution due to a partial plan termination in 2008 I thought you needed to provided another distribution election since it is now a new tax year?

Distribution of after-tax funds

feeds@yuku.com (tututaber) — Sun, 27 Apr 2008 19:20:11 GMT

Does anyone know if taxation on post 86 after contributions' earnings follow the same rule as taxation on roth deferrals' earnings? (not taxable if distributed after age 59 1/2 and with 5 years since the first contribution).

Employer is refusing to allow for a distribution because of rehire

feeds@yuku.com (cynthialb) — Sat, 26 Apr 2008 13:48:30 GMT

I am currently on medical leave from my employer of 20 years. I have a 401K with this company. I just had the 401K moved to an IRA because I need to take out a small early withdrawal for medical needs, living expenss, etc. My former employer readily agreed and processed the paperwork, at which time I opened an IRA with the same bank that oversaw my 401k. I completed the forms to get $12,000 out of my account which currently has a balance of around $200k. The move was made to the IRA, the...

Tardy HCE Distribution

feeds@yuku.com (atlgreens) — Sat, 26 Apr 2008 05:30:26 GMT

I just went to the mailbox today (4/26) and discovered a distribution check from my former employer because of a failed discrimination test. I know that the guidelines state that the employer needs to process these refunds by March 15. The check was dated March 15, but the postmark was April 16.

My question is as follows: is this taxable in 2007 or 2008. I don't know what the IRS means by the word "processed." I feel that the employer should be penalized the 10%...

Leave It or Move It

feeds@yuku.com (indalu1) — Fri, 25 Apr 2008 11:16:38 GMT

Hello... I am a single 54 yo female with 2 college age children. I have 2 401K's, 1 from a prior employer, current balance is approx $140,000. I have lost about $20,000 from this plan over the last 2 quarters. My other 401K is with my current employer, small balance. Here's the question: Should I keep the larger one where it is, roll it over into the current employer plan, or roll it into a IRA for safe keeping. I am concerned that, even if the market rebounds, I won't have...

401K distribution from hedge fund

feeds@yuku.com (dyang19) — Tue, 22 Apr 2008 10:17:36 GMT

I worked at a hedge fund until January of this year, and my 401K plan is part of the fund's main onshore account. First, I was told that I would be able to take action on my 401K plan in April of this year after taxes were filed, but now, since they filed an extension, they can not give me a date for my 401K distribution. Also, because I left in January 2008, the accountant is saying that my distribution should be done no later than April 2009.

I don't feel comfortable...