Lori Foresz

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About Lori Foresz

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  1. Hi, Can someone please confirm if a profit sharing plan can allow in-service withdrawals at a stated age of 40 and not place any other restrictions? For example, NOT require the 2-year baked rule or 5 YOPS rule- only that the participant be age 40? Help is greatly appreciated.
  2. I think I know the answer but want to be sure. If an IDA participant in a small plan has an LLC investment, does this mean that 100% of the assets are not in qualifying assets and long form must be filed. The LLC is held in custody by the IDA custodian (an RFI) but the LLC does not have a readily determinable market value. I was hoping maybe there was an exception for participant directed IDA investments that would allow us to continue to be eligible to file an SF. Thanks
  3. We took over a 457b for not for profit. The normal retirement age is specified as age 59.5 the same NRA as in the 403b plan. The plan also allows the special 3-year catchup. I am reading the regulations and have found that NRA cannot be earlier than age 65 or the NRA under the DBPP or MPPP. Is there something that allows the NRA to mirror the 403b plan and still be OK for the 3-year catchup? Any help is greatly appreciated. lori
  4. Hi, Client has a cross-tested 401k and a SEP. Do the SEP contributions need to be included in the ABT? Thanks
  5. Thanks John. Your reply was very helpful and I just wanted to thank you for taking the time to help.
  6. Hi,. We have a plan that has 6-year graded vesting on employer contributions/deferrals to the 47(b) NP plan. Participants also make deferrals from pay. It is our understanding (PLEASE correct me if I am wrong) that only the current year VESTED employer contribution (plus vesting increase from prior years' ER contributions) count towards the annual ceiling. So, someone who receives a 17,500 ER contributiion but is ZERO percent vested could contribute 17,500 deferrals from 2013 pay. We understand that due to the complexity of the annual ceiling calculation, some TPAS might be considering the entire contribution VESTED and apply it all towards the ceiling in the current year only. So, tracking of the annual ceiling is simplified. Any thoughts are appreciated. GG
  7. I recall sometime ago that IRS changed opinion and we no longer need to file Form 5330 for late deposits of 401k. I also thought we no longer needed to check a prohibited transaction occured on Form 5500 Schedule H/I. Does anyone recall. Thanks
  8. Thanks. That confirmed what I read in ERISA outline book. Employee does not even need to be comployed on 1-yr anniversary to get credit for YOS if works 1,000 hours during the consecutive 12 months following ECD. When he returns, he has already pased his 7/1/08 entry date so enters plan on rehire. Lori
  9. Plan has 1 YOS (12 months/1,000 hours) requirement with entry on 1/1 or 7/1 (dual entry) EE was hired 6/5/07, left 4/15/08 (after working 1k hours from 6/5/07-4/15/08) and then is rehired 11/21/08. Document says any employee who terminates prior to entry date but after satisfying eligibility requirements, enters the plan upon later of reemployment date or next entry date. Since the EE quit before 12 months, does he have to now wait until 1/1/10 to enter plan? This circumstance has always confused me. Thanks
  10. DBPP. Participant turns age 70.5 on 9/1/09. If he elects to defer RMD start date until 4/1/10, is the RMD for 2010 12 times the monthly accrued benfit (2010) plus 3 times the monthly benefit for 2009 (10/1/09-12/31/09) Thanks!
  11. Item 2A of the Schedule E asks if the ESOP has outanding securities acquisition loan under Code Section 133. Is this for old loans were the lender could deduct 50% of the interest paid? Our ESOP does have a note out to the prior owner who did 1042 exhange but I want to confirm we still answer this question no on Schedul E. the loan is new and I understand the 133 exemption no longer applies but is grandfathered for old loans. Thanks!!
  12. Two partners in a rate group plan. Each have Net Schedule C (after employee cost and 1/2 se tax) of 100,000. The employees are receiving only 5% of pay profit sharing from the partnership. Can the partners contribute and deduct more than 20% (can they borrow from EE amount under 25%) or are they stuck with 20%? In other words, total EE pay is 100,000 but partnership is only contributing 5,000 for the employees. Can the partners plit the other $20,000 (up to the 25% of pay limit for the EES) or are they stuck with 20% and rest of deduction is lost? Thanks!!
  13. Plans must be aggregated for top heavy testing if at least one key EE participates in both plans. But what does participate really mean? Does a KEY EE have to BENEFIT under the plan during the year or just have a balance in the plan. Sal Tripodi's book seems to say a KEY EE only need have a balance in the plan for the plan to be aggregated with another plan covering a KEY EE. So, a frozen plan in which a key EE has a balance would still be aggregated with an active plan that covers other KEY EEs and non-KEY. I guess this makes sense- I just want to be sure. thanks!
  14. Thanks Becky. I will read the PLRs to see if they shed any new light. What did you mean by "are you really combining the plan limits when only one plan is limited". Is this referring to the fact that the 401(k) plan has no ER contribution so shouldn't be combined for determining the overall limit for both plans? I'm just not sure I understood that. Many thanks Lori
  15. ESOP currently excludes 1042 seller (and family member) because of stock sale. Company also has 401(k) and exluded EES are eligible to make 401(k) contributions but there are no other ER contributions to 401(k) plan. Are we allowed to consider the "ESOP excluded EES" compensation in the 25% contribution limit (all will be contributed to the ESOP) since they are eligible for the 401(k) plan (combined plan limit) or must we disregard since they are only benefitting under the 401(k)? Would this be solved by making $10 employer match to 401(k) plan? many thanks for any help!!