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.

[Deleted; Lance, I am not comfortable with a message on the message boards that includes a reprint of an email from an IRS employee that was not intended by the author to be public. -- David Baker, message boards administrator]

It's been 3 years, i see there are now 130 songs to identify by the picture, and the song list is now 260 songs.

good grief, I have a list of answers for the first 79 but never have done more than that.

though if you really want, you could try your hane at them and send your guesses...er answers to the guy at

http://www.ssqq.com/ARCHIVE/christmaspuzzlelongpuzzle.htm and he will send you the full answer list.

then you can really spoil everyone's day by posting the answers here before others have had a chance to even tackle the problem. bah humbug.

for the rest of us, have fun.

I left the company in 2005, shortly there after the company was sold. I was fully vested. Last year I recieved a statement from the program saying I owned 285 shares. I asked to liquidate my shares before they went down in value. I was told that they could not liquidate the shares for five years after my seperation date. I recently recieved a statement that not only shows that the stock price droped $3.00/share but that they took 12 shares and randomly invested it in a "premium commercial money market". But failed to notify me of the sale of stock that belonged to me. Furthermore they did not give an exchange number for the money market im now invested in.

questions. 1. Is it true they must hold the funds for five years before dispersal?

2. Can they randomly sell my stock and invest it in anything they what to?

3. Is there any recourse for this if they have violated any of the rules of the esop?

4. Are the obligated to tell me what money market my money is invested in?

5. Who regulates these programs?

We administer a 401(k) plan where the employer mistakenly funded an employer contribution to one of the participants old SEP account.

I would think the proper thing to do is have the trustee send a letter to the IRA custodian indicating the mistaken deposit. Then we should determine earnings/losses on the deposit and have them either make a payment out of the SEP account for $xxx to the trustee or to the plan directly.

The IRA custodian is claiming the only way they can do this is by claiming the deposit is a taxable distribution.

Does anyone have experience with this?

Thanks.

Client made one $350 deferral deposit a little late during 2009 and deposited makeup/lost earnings of $8 during 2009. And then we reported the late deposit on the 2009 form 5500-SF.

The client has now received a notice from the DOL instructing/encouraging them to file under VFCP. The last client I had that did that in this situation got audited by the IRS the next year.

What does wisdom dictate here? File or not?

Thx, Greg

Client is buying a company. The company will become a wholly owned subsidiary of the client after the acquistion.

Client currently has 401k plan. It is a calendar year plan.

The company it is acquiring has a SEP (also a calendar year plan).

Client wants to make the purchase effective December 22, 2010. What does this mean with regards to the status of the two plans? Can the client have both a 401k plan and a SEP plan in the same year?

Should the SEP be terminated prior to the acquistion?

This may be beyond the scope of this forum but the client just called yesterday and thought they better check with us (at least they did it ahead of time and not after the effect.)

Any guidance out there? I could not find anything in the ERISA outline book.

Can a participant over 50 do the following?:

total deferrals= $11,993.73

total match= $6993.73

total ps= $30012.54

This brings him to the $49,000 415 limit

Can he then defer $5,500 as a catch up?