A 401(k) plan participant has been receiving RMDs since s/he turned age 70 1/2 (having previously retired). This year, he decides to purchase an annuity contract with his remaining account balance with payments to begin as of 1/1/2008. He has not as yet received his RMD from the DC plan for 2007. Question: is he required to receive his 2007 RMD before the balance can be applied to purchase the annuity contract?

For a 9/30 year end, an HCE has to take a refund to pass ADP. They had put in the 402g limit for the year between 1/1 and 9/30. Can they re-deposit their refund for the next (10/1 - 12/31) quarter? If so, their W-2 would show an amount in excess of the limit, and they would receive a 1099-R in the amount of the excess, correct?

A not for profit company is all HCE's and wants to establish a Flexible Spending Account program. I know that the HCEs and Key employees have to pass tests so the plan does not discriminate. But can the plan consist of all HCEs?

Situation: Before 2004, ER issued 30 shares of discounted, restricted stock to EE subject to a repurchase per formulaic price. No additional shares were granted after that. Repurchase is triggered by the EE's death or the ER giving notice to the EE after the termination of employment, which the ER could delay doing. Payout is withing 90 days of either repurchase event. Once the ER gives notice to repurchase, the EE can per original grant provisions postpone the repurchase of the 30 shares by 6 months for every 12 months worked after grant of restricted stock. Employment ended in mid-2006; ER chose to and gave notice in 2006; but before payout during the 90 days occurred--and yet in 2006--EE exercised right to defer the repurchase on the 30 shares per the 6-months-for-every-12-months provision. This extends payment to 2009.

No material (or other) modifications have been made to the arrangement, either before or after October 3, 2004.

This looks to me to be discounted stock appreciation rights.

Q1: Does appreciation in the value of the 30 shares of stock after 2004 count as compensation earned and vested after 2004, which would then be subject to 409A?

Q2: Does 409A apply regardless of the dates because it is discounted stock rights?

Q3: Does the ER choosing to give notice of repurchase in 2006 rather than in a later year constitute an exercise that makes payment an impermissible one subject to 409A taxes?

Q4: Does the EE exercising the right to defer after a post-employment notice from the ER, and the repurchase price otherwise became payable in 2006, trigger application of 409A to the arrangement either at that time or back to 1/1/2005?

deleted - discussed in separate topic.

ER sponsors fully insured plan for acquired division's employees and self-insured plans for all other employees.

Fully insured plan year ends July 31. Self insured plan year ends December 31.

Can employees in fully insured plan switch to and enroll in self-insured plan effective August 1 in connection with open enrollment in fully insured plan?

Thanks!

Shortly prior to end of 2006 Employer segregated out terminated participant's accounts and proposed to pay them out. 1099-R was issued, however, admin personnel never sent check. Thus, account balance stayed in segregated account until recent plan internal audit (not IRS). Off the top of my head appears that reasonable correction would be to issue corrected 1099-R's (if possible) and distribute out acct balances plus the higher of rate of return for period in question or IRS underpayment rate under §6621. There are also the distribution forms issues as well. Any suggestions appreciated. Thanks.

Employer is withdrawing from multiemployer plan. WL to be paid over 20 years. If employer pays WL, let's say, as a lump sum,

1) how will the payment be treated for tax purposes? (Difference between book and tax???)

2) Will the payment based on the 20-yr amortization be deductible each year for 20 years or can deductions be accelerated?

3) Can liabilities be recorded on a net of tax basis?

I have a doctor aged 72 with his own practice that needs to take an RMD from his Profit Sharing plan this year. His broker told him he could take this RMD and send it directly to charity.

My question is does this IRA Charitable Rollover apply to Profit Sharing Plans, or only to IRA's? If it applies to Profit Sharing Plans, how is the 1099-R coded? Thanks.

Is a Wellness Program that offers cash incentives for such activities as completing a wellness assessment, viewing on-line seminars, etc. a "group health plan" subject to COBRA? What if the Wellness Program also has a disease management piece in that it reaches out to employees who have certain diseases (asthma, diabetes, etc.) to give them advice and coaching to manage their disease? Any thoughts would be appreciated!!

We have a 457(f) plan that pays benefits in a lump sum within 2-1/2 months following the end of the plan year in which the participant completes 10 years of service. We meet the STD there. The problem is that the plan allows the participant to extend the distribution date for 5 years beyond the otherwise applicable distribution date. We still have a SRF for purposes of 457(f), so no income inclusion. My understanding is that the SRF would be shot for purposes of 409A and now we have to make this payment comply with 409A. Does that sound right? Need more info?

DB plan. Corp is sponsor, partnership adopted plan.

Corp has just one employee, the owner.

Is the allocation of the db contribution plan required to be allocated in any specific way between the entities?

Can we adjust on page 1 of 1040 a DB contribution where the partner has 0 self-employment income?

In the HIPAA regs issued on 12/30/2004, the preamble discusses the requirement for certain entities who are not otherwise subject to HIPAA to provide certificates of creditable coverage (related to PCL). This included Medicare, Medicaid, Tricare, etc. The preamble states that the unique manner in which these programs operate necessitate implementing the HIPAA certificate requirement differently and that HHS would be issuing separate guidance. Did that ever happen? I can't find anything explaining how the HIPAA certificate requirement applies to plans such as Medicare Advantage which can be issued on a group basis through employers. Can anyone help direct me? Thanks!

I'm designing a plan for a Consulting firm. Their goal is to encourage mid-term longevity. They'd like to keep good people for at least 2 to 5 years.

Here's the thought:

Allow immediate participation. Immediate rollovers for NON-HCE's.

Employees become eligable for a NEC on the 1st day of the year after one year of service.

3% NEC guaranteed. Discretionary contributions based on profit and / or the 'employer's whim'.

Immediate vesting for the 3% NEC and discretionary constributions.

My thinking is: This is a safe-harbor plan that still be subject to top-heavy testing. Is this a correct assumption?

Thanks,

Fender

I am retired and would like to rollover some of my ira into roths. Can I do so without regard to income?

I have very little income, so would this be a limiting factor.

Can you contribute to an IRA if you are enrolled in a 401K at work. Can you contribute to and IRA if your spouse is enrolled in a 401K at work.

I'm trying to find a Web site that's not from just one bank, or one consultant, that helps me find the right 401(k) plan for my business.

When I wanted to find office space, I went to http://www.loopnet.com

When I wanted to find a lawyer, I went to http://www.findlaw.com

When I needed software, I went to http://www.capterra.com

Why isn't there a place like that for 401(k), or benefits in general, where I could type in my company size and location and a few other pertinent items and get a list of brokers or consultants or plan providers that fit my needs?

Is there some legal or licensing reason they don't exist? Or have I just not found it yet?

Please advise.

I had been just told 5 days after the grace period date the if you AGI for the year is over $156,000 for the year that you can't contribute to a Roth IRA. We didn't know that we were going to go over or even come close but we had cut back on 401K investing to have more available income for early retirement. That made our AGI for 2006 go over. We did invest on a montly basis to our Roth IRA. Now I was told that I must remove the amount contributed and estimate the earning and file an amended 1040X for the earnings income. Etc. Etc. How else can this be handled?

Now this year we have been contributing to our Roth IRA's up until Oct. and we have not exceeded the AGI yet so I have maxed out our 401K's for the remainder of the year to try to stay below $156,000. Would you recommend I move our contributions right away now or wait to see if we go over $156,000 this year or not. I have stopped making Roth IRA contribution for now until we know for sure.

Help!!!!!!! Who would know we would make enough money to go over the limit!!!!!!

If the beneficiary wishes to keep her deceased husband's account in the plan, does this become a distributable event if the account is transferred to her name/ss#? She is not a participant in the plan. 1099R issued? Thanks.

Linda Michals