A plan is planning to terminate and file a 5310 on-cycle (1/31/11). Is a 5300 also needed to be filed? I haven't been able to determine this under 2007-44.

Does anyone know when the 2010 5500-EZ will be available? I have several clients that are both short years (Plan terminated and assets rolledover) and full year Plans (administration completed) that I am ready to complete 5500-EZ's for.

Any help would be greatly appreciated.

Thank you.

The plan has moved assets to a platform and the employer is having to have the payroll file "rewritten" to make the adjustments to meet the platform's reporting/submission requirement. Aside from is this a reasonable amount, is this an expense that can be paid from plan assets? Thoughts?

We have a Keogh. The person sponsoring the Keogh was 70.5 in 2010. The RMD was paid to him and tax was withheld. Shortly after that this person died. Who signs the 1096 and 945 that needs to be filed?

Does anyone have a link or can give me direction to where they found this answer?

Thanks

I found out yesterday that one of my clients authorized 2 distributions from the plan last year. The plan has individual accounts with Fidelity (who carried out his orders, no problem!). One participant was terminated in early December and received 2 checks last month. Since I have no financial statements (trustee working on that...), I assume that this check was issued with out federal withholding. EE rec'd a total of $849.19. The other distribution was issued to an employee/participant in September for the amount of $3000. This participant had a vested account balance of $4047.03 on 1/1/10. The plan allows for in-service w/d at 59 1/2 (she's 28, so that's out), hardships under the safe harbor standard, and loans, with no restriction on the reason.

1) former employee needs a 1099-R showing the dist; how about filling out a distribution form after the fact?

2) current ee is a bigger problem. From speaking to the trustee this monring, it does not sound like her problems qualify for a hardship ("she needed the money to pay her bills, and she had car problems...") - but that's an assumption on my part. Do you think we can set up part of this distribuiton as a loan (from her safe harbor source) and the remainder as a h/s from her deferrals? Fill out the necessary paperwork and set up the loan repayments going forward, but the loan should be no more than 5 years after the date she received the check? If she doesn't qualify for a hardship, could we do the loan thing to the max dollar amount she can take and the remainder would be a deemed distribution? If the entire distribution should be deemed, how does that effect the plan? The plan does have a bond in plan, for 10% of plan assets. So her 1099-R should be?

What a mess!

I've attached a spreadsheet that I designed and would like to gather your opinions on why a formula such as this isn't used more often in connection with payroll software. I could be completely off base, but it seems as though this would be a very effective way of administering a 401k plan if the software was programmed appropriately. This specific spreadsheet is set up for the basic safe harbor match of 100% of the first 3% and 50% of the next 2%, and is for a company making semi-monthly payrolls. The design is one of a running true-up, so each employee would receive a match every payroll based on their YTD deferrals and YTD earnings. Would this work for a plan in which the match was made every payroll, but calculated on an annual basis? I'm actually on the payroll side of things and would love to hear some feedback about how this approach would jive with 401k rules, because I have yet to see a plan that provides for a match every payroll that doesn't have some tradeoffs. If I'm not mistaken, this spreadsheet will always end up calculating the appropriate match with no need for a normal year end true-up. I challenge you to find a scenario that can stump it given the previously mentioned parameters.

You can change the pay, election %, or flat amount for each pay period and the annual deferral limit to be 16500 or 22000. For each period, you should only have filled in an election % or flat amount, but not both. It's not the prettiest, and there is more formatting that can be done, but please give it a go and let me know what you think.

Thanks.

401k_SH.xls

One employee X owns 100% of company A. The same employee X owns 90% of company B. The rest of company B is owned by employee Y.

Both companies are covered by Plan run by Company A.

I know I have have a controll group issue, but my question concerns who are HCE? Employee X is clearly a HCE. But is Employee Y also a HCE? He does not own any of Company A but he owns 10% of Company B.

Please advise....

Participant knew he had an RMD coming for 2010. Funds never arrived from the Investment House. Investment House then sends check dated 1/12/2011. Is this a valid 2010 RMD? Did the participant miss the 2010 RMD? What are the consequeances of a missed RMD?

Husband and wife worked for the same employer. Wife quits. Husband mentions to the employer that he and his wife "may" be getting divorced. Wife wants a distribution of her PSP balance. Nothing "official" yet as to any divorce. In fact, the husband and wife still reside in their home - just in different parts thereof. Employer suspects they can't "afford" to get divorced.

Any liability to the Plan if a distribution is made to the wife of her vested balance? Would obtaining the husband's acknowledgement and approval be waranted?

Anybody been down this road?

Thanks!

Does anyone have a link to an updated list of the States that require a state tax withholding for rollover-eligible distribution and the amounts? Thank you.

Client (calendar year plan) never funded their 2009 profit sharing contribution that we had calculated, but they want to (they had much higher compensation that year, and now they have plenty of money in the bank and want to put as much of that as possible towards retirement). In this case, there are no 415 issues for anyone involved (they all have plenty of comp in 2010 and will also in 2011). I am also aware that they client probalby needs to am,end their 2009 tax return, and this contribution, if made will need to be deducted in 2011 (so I need to be careful about how I treat the 2011 contribution for max deductible issues).

-Is anything stopping me from allocating profit sharing contributions today based on 2009 compensation and using 2009 compensation for cross testing?

-I know the contriubtions will be deductible in 2011 (right?)

-I assume they will also be subject to the 2011 415 limits,.

Lots of other things have specific dates, but there is not one that I am aware of that relates to when a contriubtion must be made to be included in rate group testing for a particular year. Can anyone point me to reg that says I can't do this?

Are Qualified Reservist Distributions and HEART Withdrawals eligible for rollover to another qualified plan or IRA?

Someone called me today and wanted to set up a self-directed IRA so they could loan a relative money from the IRA. Without getting into that issue, where does a person go to set up a self-directed IRA.

I never heard of a "self-directed IRA" until a few minutes ago. I was told they need an attorney to draft a document. Is that correct?

What makes a self-directed IRA different than a normal IRA? Would any bank be able to offer them, or are they something different?

Assume a doctor submits a claim to an insurance company, which is initially denied. The patient appeals the denial. While the appeal is pending the patient takes an HSA distribution to pay the doctor's bill. The next year, the insurer overturns the initial claim's decision and pays the doctor. The doctor then refunds the intial payment back to the patient.

My interpretation is that there is no early withdrawal excise tax on the initial withdrawal because the participant had a reasonable basis for believing that the HSA distribution was to reimburse a qualified medical expense that had not been (and was not going to be) reimbursed by insurance. I do not think that this result is changed when the insurer subsequently decides the appeal.

In the year that the appeal is approved, the doctor's refund payment would be taxable income to the patient (applying analysis similar to the casualty loss rules). The refund cannot be redeposited into the HSA account (except perhaps as a funding source for otherwise permissible HSA contributions for the year).

Do you agree/disagree?

Are Qualified Reservist Distributions and HEART Withdrawals eligible for rollover to another qualified plan or IRA?

The stock of a Corporation held by the 401k plan is non-publicly traded. How is the Fair Market Value ascertained? The Corporation is also the Plan Sponsor.

Issue: A money purchase plan is terminated. Subsequently its assets are merged into a profit sharing plan. Participants in the money purchase plan are not provided the option to take distribution rather than have their accounts merged into the profit sharing plan.

Question: Would this be a failure under EPCRS? If so, how would it be corrected?

I know it's been discussed here and I think the answer is - if the plan uses prior year testing, and there were no NHCEs in the prior year, then the HCEs are not subject to testing.

Yes?

Just noticed that American playwright and screenwriter Horton Foote Jr was born on 3/14/16.

We took over a 401(k)/PSP plan. The document is not updated for EGTRRA (past the 4/2010 deadline).

We have deicded to restate the plan to reflect EGTRRA (Form 5307).

We have also decided to submit to IRS under the Volunatary Correction Program to correct the non-EGTRRA provisions.

Question: Can we file the Forom 5307 simultaneously with the VCP Form F? Or do we file 5307 first, wait for approval, and then file VCP? Or vice versa?

Thanks for all responses.

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