How do I complete schedule c, in particular, Section 2 of Part I?

I knoiw there was transitional relief for a good faith effort, which applies in this situaiton.

(I posted this first in the 5500 "Department" but no one replied )

i have a pulmonary doctor who earns directors fees from a local hospital. He receives a 1099 for these services and he is not employed there. He also owns his own medical llc and has elected entity status as a corp. Doctor wants to max fund a SEP for his director fees but TPA says no since he owns 100% of his entity and has employees and receives a W-2 for income paid by his entity for professional services. Is this correct?

I seem to recollect that contributions may no longer be made to an IRA after an individual has attainted age 70.5. Correct - or no?

What about SAR SEPs and SEP IRAs?

Also, I am fairly sure that's NOT the case with qualified plans.

Thanks!

I have a client with a discretionary employer match. Is there a sample letter available that I can give them to send to the participants if they elect to not exercise the match next year? Please PM me if you would prefer not to post in the forum...

Thanks in advance

If a Plan is reaching the 120 participant threshold, what do you think about the Employer adopting a new Plan to avoid the large plan audit? If possible, are there any unreasonable eligibility classifications to stay away from?

Plan with Top Paid Group Election has 10 employees prior year so top paid group is 2. There are 3 owners (>5%) and 7 staff. The highest paid employee is one of the owners, lets say $300,000. The next two highest paid are non-owners and they earn the same amount, lets say $250,000. Are both non-owners considered HCEs?? Thanks.

I am assisting our client with an application under the VFCP to correct several months of late EE deferrals under their 403(b) plan. The lost interest has been calculated by using the VFCP calculator and now I'm moving on to the Form 5330. I was caught off guard when I read the instructions under Schedule C, Tax on Prohibited Transactions, because I don't see reference to a 403(b) plan under the description of what the term "plan" means. Perhaps they don't have to file a 5330?

I have a plan that has an operational failure under 401(a)(17). The error occurred in the 2009 plan year. What is the latest date that they can correct using the account reduction method? I know generally for a failed ADP/ACP test, we advise our clients to either refund or forfeit the excess by the end of the following plan year. We typically require a one-to-one correction after that time.

I am looking for some written documentation that specifies the timeline for making corrections. I haven't been able to find anything definitive in EPCRS. Any help would be appreciated.

For a single owner LLC, am I correct in utilizing Schedule C, line 31 as the amount on which to base the employer's 3% matching contribution for him/herself? If not , what is the correct calculation?

Thanks in advance.

Is there a way to circumvent the plan administrator signing off on hardship withdrawals? He does not want to be responsible for determining a qualifying hardship. If it is listed in our plan document that these be allowed to employee, then what can we do if he refuses to sign them. Is there a signatureless process?

I'm wondering if anyone can offer guidance on the compliance of the following situation:

An employer group sponsors a DCAP program. They wish to make contributions up to $50 per month to individuals signed up in the plan, with children under the age of three. They do not want to make contributions to those individuals with children older than three years old.

To me, it doesn't seem like this will fly, but I can't find anything in the regs one way or another. Any guidance is appreciated.

Thanks!

If the Company tax return has already been filed but the extended deadline has not passed, is it too late for the Employer to make a Profit Sharing contribution and then amend the original return to take the deduction?

Facts:

1. Group health plan fully insured on March 23, 2010

2. Contract renews April 1, 2010

3. Plan year begins December 1, 2010

4. Contract renews April 1, 2011

Query:

On what date must group health plan remove all lifetime dollar limits and unrestricted annual limits on essential benefits as well as remove pre-existing condition limitations on covered individuals under age 19 and allow all children of covered employees not eligible for other employer sponsored group health plan coverage to join and remain on coverage until 26th birthdays?

Anyone know of a case standing for the proposition that ESOP fiduciaries may incidentally benefit from a merger transaction, provided that it resulted from acting solely in the interest of participants & beneficiaries? There are a few cases citing the ESOP's legislative history as indicating that ESOPs also serve as corporate finance vehicles, etc. Anyone know of a case discussing this in the context of a transaction in which an ESOP is used to acquire another company?

Safe Harbor Plan - 3% nonelective. Calendar year/plan year. Eligibility is 21 and 2 months for making deferrals while age 21 and 1 year of service for SHNEC. Monthly entry dates. Designate as separate plans and use the otherwise excludable rule and will have to ADP test the excludable group. How long is an "excludable eligible 'EE included in the testing group? (I understand the top heavy consideration too.)

For example - 'EE hired 2-1-10 and enters the Plan 4-1-10 for purposes of making deferrals. Eligible to receive SHNEC effective 2-1-11(one year of service). SHNEC is based on compensation from time eligible to participate in SHNEC. Would this 'EE be included in the 2011 ADP test since they were eligible to make deferrals but didn't receive the SHNEC for part of the plan year (for 1 month's compensation)? If so, would they be tested based one month's (January 2011) compensation?

Am I correct to assume if the SHNEC was based on the entire plan year's compensation (2011) this person wouldn't be included in the 2011 ADP because they would have received a SHNEC for their compensation for the entire plan year?

401(k) plan provides a match - but in order to receive a match a participant must defer a minimum of 3% of pay.

So if John defers 2.5% he'll receive no match at all. If Barry defers 3.5%, he'll receive a match of 50%.

So my question - is John going to be on the ACP test? I know that in order to be on the ACP you must be eligible for the 401(m) provision of the plan. I can see it both ways. John was eligible for the 401(m) provision because he didn't defer 3%. On the other hand, he had the ability to defer 3% - so maybe he should be on the test.

Any thoughts?

The owner of a business just hired his step-daughter. She has not been adopted by the owner (original parents both still have rights). So far, this looks like a NHCE.

However, the business owner (100% ownership) lives in a community property state (Wisconsin). So, due to community property law, I think the spouse of the business owner is considered to directly own 50% of the business (even though there is no actual direct ownership of any company stock certificates by the spouse). If that is correct, then this would make the step-daughter a HCE?

Agree? Disagree?

If my client's plan provides for a Qualified Reservist Withdrawal are Roth 401(k) assets permitted to be withdrawn? Can you provide me with the Regulation and/Code that permits such withdraw?

If my client's plan provides for a Qualified Reservist Withdrawal are Roth 401(k) assets permitted to be withdrawn? Can you provide me with the Regulation and/Code that permits such withdraw?

How do I complete schedule c, in particular, Section 2 of Part I?

I knoiw there was transitional relief for a good faith effort, which applies in this situaiton.