A calendar year client puts their 2009 corporate return on extension, files it on 4/12/2010 with a $0 pension deduction. Later it is determined that a minimum contribution is due. Client makes the contribution by the 9/15/2010 but does not amend their corporate return.

Is the contribution allowed to be carried over to the next year? I know that it would be if they had not put the return on extension, but wanted to confirm if the extension would cause any problems.

401(k) plan with a 1/1 plan year. Plan terminated on 1/31/2010. Plan term payouts have not yet been distributed.

Due to the prorated 415 dollar limit from 1/1/2010 to 1/31/2010, several participants have exceeded the 415 limit - and the excess includes matching contributions.

The EPCRS states "Any matching contribution...is then forfeited and placed in an unallocated account established for the purpose of holding Excess Allocations to be used to reduce employer contributions in the current year and succeeding year(s). While such amounts remain in the unallocated account, the employer is not permitted to make contributions (other than elective deferrals) to the plan."

Well, since this plan is terminated - there will no longer be employer contributions. So putting the match into an unallocated account is not going to do much good. Are there any other alternatives for a terminated plan?

If a VEBA is terminated and monies come back in the form of health Plan overpayments, Medicare, Third Party Subrogation how does the employer handle these refunds to the terminated Trust? Isn't this reversion if not distributed to the participants?

In calculating the alternate payee's share, is non-marital money (money the participant invested in the plan before the marriage) deducted off the top before the 50% split is done, or is this money deducted after the 50% split is done (from the AP's 50% share)?

For example: The total value of the participant's acocunt is $200,000. The particpant's pre-marital amount is $10,000.

Is the alternate payee's share figured 1) $200,000 minus $10,000 equals $190,000. 50% of $190,000 equals $95,000; or

2) 50% of $200,000 equals $100,000. $100,000 minus $10,000 equals $90,000.

#1 favors the alternate payee and #2 favors the participant. Is there actually a correct way to calculate this? If so, can someone make sense of this mathematically for me?

Thank you in advance! This board has some really helpful and knowledgable people.

I recently reviewed a 2008 ADP test that had the low paid spouse of the 100% owner as a NHCE.

I thought all 5% owners were HCE's. Isn't the spouse an owner via 318 attribution?

Spouse had 401k deferrals of around 90% so the adp test was significantly impacted

say a plan sponsor signs a new 401k plan in april 2010 and does not submit for det letter until may 2010 does the IRS say that plan cannot be corrected for a plan document defect or is there some sort of relief for a new plan?

Thanks.

Is anyone aware of any cases finding that an employer did NOT have a complete withdrawal under 4203(a)(1) upon ratification of a new CBA that did not require any contributions to be made on behalf of any employee? That would seem like a permanent cessation of the obligation to contribute (as described in 4212(a)(1)).

I was wondering if there was anyway to set up a PSP with davis bacon offset for testing purposes. Anyone have any luck? Not sure if it is even possible however.....

Thanks,

Jason

New comparability plan with one owner and one NHCE. The only rate group passes for the profit sharing contribution, does that mean there is no avg benefits test required (that would include 401(k) contributions)?

Are targteted qec's - limited I think to 5% of pay to nhce's - still allowed as a form of bottom up qnec?

As the DOL has not issued final regulations on when an employer must post a copy of their Form 5500/Schedules on their Intranet (used to communicate to their employees only and not the general public), is this item not currently required?

OK...Here is the situation. I have a plan that has 3 divisions. The Match is discretionary. Div 1 match is 50% up to 6, Div 2 match is 100% up to 4%, and Div 3 has no match for this year.

For the purposes of coverage and ACP testing, would I count Div 3 participants as benefiting or not? My thought is since the match is discretionary, they are benefiting at a 0% rate for this year. I understand I will need BRF testing since the match is different by division.

Any thoughts/comments.

Thank You!

I received a mailing from a TPA firm indicating that the IRS is sending out a questionnaire to about 6,000 retirement plan sponsors inquiring about the plans processes and documentation. Has anybody else heard about this?

Thanks.

at least its now out there with ft williams

A plan had a vesting schedule. Then it was amended to provide 100%, immediate vesting.

Does that vest 100% those former employees whose employment ended before the amendment's effective date, and were only partially vested under the former schedule?

The plan amendment does not specify in this regard.

Does the 1st 6% of compensation contributed to a 401(k) plan reduce the earned income of a sole proprietor for deductibility purposes?

I have a new plan in 2009. Key employee takes a loan. About $2,000 comes from the employee deferral source; $18,000 from an unrelated rollover source. For this particular plan we don't build the loan onto Relius, we receive a financial data download from investment vehicle holding the assets. Although all the loan withdrawals & repayments are shown going in & out of the correct source, for purposes of top heavy the loan is a separate source & the entire outstanding balance is being included in the top-heavy test.

My question is this -- Is there an easy way to manually play with the top-heavy balance to make it correct?

Thank you for any guidancce.

Company has just done its SEP calculation for 12/31/09 plan year.

A terminated employee is entitled to a contribution of $279 who was never in the plan and does not have an account.

She cannot be found at this time either.

What do they do ?

an Adoption Agreement states "In computing the ACP, the employer shall take into account and include as Contribution Percentage Amounts: option 1) Elective Deferrals and/or 2) QNEC's

under the plan or any other plan of the employer."

I thought elective deferrals/QNECs applied to ADP and employer match/QMACs applied to ACP?

Is my thinking wrong?

Hi, The attorney is a partner in a large national law firm owning a partnership percentage of about .25%(1/4th of 1%). He also does outside consulting work in the education field earing about $125,000 in schedule C net profit. At the law firm, he deferred $22000 into the law firms 401(k) plan. It is my contention the he can also contibute up to $49,000 into a Profit sharing Plan established by his consulting practice. Am I wrong?

Thanks, my time is running out 4/15.