Discussion:Ending Keogh; Starting Simplified SEP
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| Revision as of 08:15, 14 March 2007 Stolidman99 (Talk | contribs) (Perhaps the for) ← Previous diff |
Revision as of 21:10, 31 July 2009 Jake (Talk | contribs) (Two years later) Next diff → |
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| Perhaps the form 5310 is useful only for the termination of a defined benefit plan if there is more than one participant because the distribution of assets between participants with varying rights to those benefits can be very complex. Presumably the services of an actuary would be required in order for the plan to fulfill all the fiduciary duties in distribution of those assets. Since the plan administrator,plan participant and employer are all one and the same in a sole participant Keogh the issue of asset division and then a total distribution of assets should not arise and the form 5310 would serve no purpose. Sounds logical?}} | Perhaps the form 5310 is useful only for the termination of a defined benefit plan if there is more than one participant because the distribution of assets between participants with varying rights to those benefits can be very complex. Presumably the services of an actuary would be required in order for the plan to fulfill all the fiduciary duties in distribution of those assets. Since the plan administrator,plan participant and employer are all one and the same in a sole participant Keogh the issue of asset division and then a total distribution of assets should not arise and the form 5310 would serve no purpose. Sounds logical?}} | ||
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| + | {{ForumReplyPost|UserID=Jake|Date=31 July 2009|Text=Two years later I am back- Never ended my Keogh plans (money purchase plan and profit sharing plan). | ||
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| + | Now I have to because Vanguard is no longer going to support Keogh plans. Vanguard tells me that it is too late to terminate as of 12-31-2008, that there is no formality to terminate - "just write a letter to yourself and keep in your file". Vanguard is going to charge me $200 if I do not terminate in 2009. | ||
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| + | I would like to make my contribution for 2008 the final and with 2009 start a SEP-IRA instead. As always I have an extension to 10-15-09. This is a one person Keogh plan (me). What does IRS care if I decide now to terminate my Keogh as of 12-31-2008. | ||
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| + | [The Form 5310 ask for an IRS determination - it does not appear to be mandatory to ask for that. All my paperwork has been IRS approved Vanguard Plans so there should be no risk that they are not in order.] | ||
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| + | Jake | ||
| + | }} | ||
Revision as of 21:10, 31 July 2009
Discussion Forum Index --> Tax Questions --> Ending Keogh; Starting Simplified SEP
| 1 April 2006 | |
| Just me in this business - age 63. Started Keogh mpp and psp plans before the higher limits on simplfied SEP's. Would like to stop Keogh, start Simplied SEP, and then roll over Keogh to Simplified SEP if possible or to IRA if not possible. Reason is (1) gain flexibility in contribution amounts, and (2) not have to file those damn 5500-EZ's. I assume I have to make my Keogh contributions for 2005 income, but what do I need to do to stop/freeze these Keogh plans at that point and start Simplified SEP? I think under new law all retirement plans have similar creditor protection (IRA'S etc.) | |
| 9 July 2006 | |
| Sunday, July 09, 2006
Greetings, Jake. What is a psp plan? Thank you. | |
ConservativeDC (talk|edits) said: | 9 July 2006 |
| All you must do is terminate the Keogh plan and roll your vested balance into a SEP-IRA (if your trustee allows it), or a rollover IRA separate from your SEP-IRA if they don't allow a direct rollover.
You will need to file a finalized 5500-EZ for the last year of the Keogh, and then you're done. | |
| 25 January 2007 | |
| What about having to file Form 5310 in order to terminate a Keogh plan? From what I am seeing from IRS, you need to complete and file the Form 5310 with in 30 days of terminating the plan. | |
| January 25, 2007 | |
| No, you would only need to file a final 5500-EZ to terminate a Keogh plan. | |
Stolidman99 (talk|edits) said: | 14 March 2007 |
| Perhaps the form 5310 is useful only for the termination of a defined benefit plan if there is more than one participant because the distribution of assets between participants with varying rights to those benefits can be very complex. Presumably the services of an actuary would be required in order for the plan to fulfill all the fiduciary duties in distribution of those assets. Since the plan administrator,plan participant and employer are all one and the same in a sole participant Keogh the issue of asset division and then a total distribution of assets should not arise and the form 5310 would serve no purpose. Sounds logical? | |
| 31 July 2009 | |
| Two years later I am back- Never ended my Keogh plans (money purchase plan and profit sharing plan).
Now I have to because Vanguard is no longer going to support Keogh plans. Vanguard tells me that it is too late to terminate as of 12-31-2008, that there is no formality to terminate - "just write a letter to yourself and keep in your file". Vanguard is going to charge me $200 if I do not terminate in 2009. I would like to make my contribution for 2008 the final and with 2009 start a SEP-IRA instead. As always I have an extension to 10-15-09. This is a one person Keogh plan (me). What does IRS care if I decide now to terminate my Keogh as of 12-31-2008. [The Form 5310 ask for an IRS determination - it does not appear to be mandatory to ask for that. All my paperwork has been IRS approved Vanguard Plans so there should be no risk that they are not in order.] Jake | |
