The IRS Audit Blog

Archive for September, 2009

School Science Fairs Being Phased Out

In Cabell County, W.Va., the science fair as many know it is becoming an endangered species. It’s a matter of balancing a pursuit of knowledge with a changing world of funding and politics.

Any fee, that is more than a cost quencher, is a tax!

Question: An Indian Revenue Service (IRS) Officer can join private sector after fifteen years of service? As He wish?

what salary can expect in abroad?

Answer: Why not, he can join…

Harvard Natural Target for IRS Audit, Administrator Says

The University’s top finance official has described the Internal Revenue Service’s decision to include Harvard in its audit of 40 institutions of higher education as a natural consequence of Harvard’s large and diverse operations.

MAYOR CLINTON YOUNG JR. APPOINTS UNQUALIFIED JUDGE HELEN M.BLACKWOOD

New Business Runs Errands for Those Who Can’t

Road Runners is dedicated to running errands for those who can’t and inspiring others to lend a hand to people in need.

The Harry Thomas Show May 27th 2009 10 of 11

Question: How can I change the 401k to non-deductible, so I can contribute to my IRA for 2006?

My situation: I joined the company 401k plan in the mid-December 2006. Which I thought will start from beginning of 2007. However, my company started draw the money immediately and I didn’t notice until I got my W2 form recently. The 401k deduction is only $769 for year 2006. I have already put money on my IRA account which I can put $5000 for 2006, I’m 50 years old. Based on the IRS rule, I could not contribute to IRA if I have 401k and have AGI more than $80000 in 2006 which I did. Is there any way that I can change the 401k contribution to non-deductible, so I can contribute to my IRA?

Answer: Where you eligible to defer immediately upon joining? If so, you’re screwed. Even if you didn’t defer, you were eligible so you’d get an X in the box stating that you were covered by a 401k plan.

Some companies may have immediate eligibility but they have monthly entry dates. That date would be the first of the month following date of hire. Check your SPD. If that’s the case then your deferrals are not allowed because you are not an eligible participant. Have them pull out the deferrels as an excess contribution and issue a revised w-2 showing you as not being covered.

But, if it’s immediate eligibility and immediate entry then you’re out of luck. You’ll have to shift the IRA contribution to non-deductible status. The reverse can’t take place.

Bottom line it’s all about coverage…if you were covered by the 401k then you can’t use the IRA even if you chose not to contribute to the 401k.

Why can’t the Senate do anything?

Why, at the moment, does Washington, and the Senate in particular, seem so gridlocked?

What is the Difference Between MY Employer 401K and a Self Directed 401K?

For Wharton, Going Off Script Part of the Job

Memphis Mayor A C Wharton Jr. delivered his first state of the city address this week in a day crammed with several carefully planned events. Before t….

Evangelist’s compound raided in child abuse case