I have a plan... 3 ees

Comp/deferrals

1- 168,000/15,500

2- 142,000/15,500

3- 37,000/0

SH Match...

What is the max contribution for this plan?

Please display each EEs ER contribution.

Thanks!

A company is going to spinoff from a PEO and start their own plan. Would this be considered eligible to do safe harbor for 2008 since it is a startup or is it looked at as a continuing plan and would have had to have the notice out by 12-2007?

I am in the process of terminating a DB plan, accruals have been frozen, notices have been sent out but we have not yet filed with PBGC.

One of the principals has retired, wants to take his RMD and rol over the balance to an IRA.

Can he do this prior to filing with PBGC?

Interstingly enough, I called PBGC, spoke to one of their staff attorneys, and he has not been able to give me an answer.

We've just taken over a plan where the Normal Retirement Benefit is subject to a 1% annual COLA. The only two retirees under the plan are the former owner and his wife. I don't have any history with respect to any other former employees.

The plan was frozen by amendment at 1/1/06. I'm assuming the freeze extended to the COLA as well as the accrual for active employees, but I don't know for sure. If the COLA was not frozen, what issues does that create with respect to 401a26, 410b, and 401a4?

What is the latest position of the IRS on whether an LLC can place each member of the LLC in his or her allocation group for purposes of the cross test. I've heard concerns that this is tantamont to a deemed cash or deferred arrangement. Do most people recommend broader groups for an LLC or LP?

As we know, if a plan passes the 1/3 rule, forfeitures are not included in the 415 test. However, it is not all forfeitures that can be ignored, according to 415©(6) it is only forfeitures of employer securities acquired with a 404(a)(9) loan that can be. 54.4975-11(d)(4) says no stock allocated from a suspense account (eg acquired with a loan) is forfeited before all other assets available for forfeiture are. Therefore, in order to accurately perform the 415 test and forfeit amounts from a participant's account, it is necessary to track the source of the shares, forfeit cash, other assets and non-loan shares first which are then included in the 415 test regardless of the 1/3 rule, then forfeit loan shares as needed. Only the loan share forfeitures are excluded from the 415 test and only if the 1/3 test is passed. Have I stated that correctly? If so, what a pain. As always, thanks for any comments.

I've been trying to locate a resource to help me understand how each state treats 457(b) public and private plan distributions.

Please let me know if you know of a guide that you have found helpful. Maybe this has already been discussed in another thread on this site? If so, please let me know.. thank you.

Thank you.

Does anyone know whether an employer can allow employees to participate in the employer's cafeteria plan if the employer does not have reporting/withholding obligations on the incomes of such employees? Any thoughts or ideas are much appreictaed. Thanks.

Discovered that a loan was over paid, and now the plan's investment account has excess loan payments in it. We figure that we need to refund those excess loan payments. Should we also calculate earnings attributable to those excess loan payments?

Also, it seems that taxes should not be taken from the excess payments since they shouldn't have gone in the plan in the first place (the loan was paid off, but money was sent in in error). The earnings should be taxed...right?

Does anyone have any thoughts on this? I can't find anything anywhere that tells us what we should do.

Thank you.

Trying to help a client out, but I do not have any experience with the Form 5330. What is the correct way to report the interest amounts on multiple late deferral deposits over several years? The client settled with the DOL and was informed to file Form 5330 for the excise tax on the interest on the late deferrals. The interest amounts are very small, a total of $1,250. However, there are 34 separate occurances from 2002-2007. Is it acceptable to list the total on line 25(b) under column (d) on the Form and calculate the 15% excise tax on that amount, or must each occurance be listed separately? Or, a better way?

Please help, I'm clueless about this! Thanks.

If an employer settles a claim that arises out of an employee not being paid for the classification of duties being performed and the settlement does not characterize the payment as backpay, IRS guidance says the settlement payment is wages for employment tax purposes. Is the settlement payment going to be treated as wages for which the employer has to pay additional pension contributions?

The proposed 125 regulations specifically allow a spend-down for a DCAP. The regulations appear to be silent on whether a spend-down is permitted for a health FSA. (correct me if I am wrong) I am aware of plans that have spend-downs for both DCAP and Health FSAs. Are they permitted for Health FSAs? If so, are they limited to the amount contributed as of the date participantion ceases or does the normal universal coverage rule apply.

BTW - by spend down, I am referring to claims incurred after terminatin of participation but during the period of coverage.

Pardon my ignorance; I think I know a little bit about retirement plans but am under no such delusions about health benefits. I've tried to beg off from involvement, but here I am.

When an employER is funding the account, is a plan document required? Intuitively, I think so; I don't see how an employer can just arbitrarily start throwing tax-free money into an account without some sort of documentation. The HSA administrator is not able to provide a direct answer, which is frustrating.

When an employER is funding the account, is 5500 reporting required? I have at least one source saying "yes." Again, the HSA administrator is clueless.

If a 412(i) plan is set up, and then at some point the sponsor fails to make the premium payments, and continues notto make them for several years, what are the ramifications?

Is the answer dependent on anything else, such as whether any of the policies have lapsed?

If a participant terminates and is then rehired, do they have to take a minimum distribution? They turned 70 1/2 in 2007.

Please excuse me if this has been answered before. I have a feeling it might have, but I just don't feel like slogging thru all the posts right now.

A calendar year plan specifies that AEQ assumptions are interest based on 30-year Tresury securities, and the mortality table specified in Rev. Rul. 2001-62. No mention of minimum lump sums, no separate AEQ for lump sums and other forms, no incorporating the interest rates or mortality table by reference, and these are the AEQ assumptions for all forms of payment. Stability period is one year, and the November rate is used.

Assuming the plan is not amended by 1/1/08:

1. As of 1/1/08, do we need to calculate the lump sum based on the old mortality table (2001-62) and the Nov. 2007 rate? Or is the 12/31/07 lump sum amount protected? (Clearly we need to provide the minimum LS based on the new rates.)

2. As of 1/1/08, I believe monthly options are based on the Nov. 2007 Treasury rate. Do we continue to use the 2001-62 mortality?

Are the assumptions below correct? I have seen conflicting information regarding the Safe Harbor.

2 companies, 1 owner owns 90% of both = controlled group

Looking to set up safe harbor (basic match) for company A and no plan for company B

Coverage - need to include all employees of A & B for coverage testing

ADP/ACP - only plan is Safe Harbor, all employees of company B are not eligible and thus excluded

Any clarification would be appreciated. Thanks.

Employer's DB plan has a 10/31 YE whose limitation year is defined as the calendar year that ends within the plan year. Because the plan is fully funded and no contribution can be made, they are considering adding a DC plan so that something can be contributed. Assumedly, the new plan would also have a 10/31 YE.

If the limitation year in the new DC plan is defined the same way as the DB's, it appears that there wouldn't be a problem if only profit sharing contributions were made. However, if they opt for a 401k plan, wouldn't the deferrals have to come out of the compensation that was paid only during the two month overlap between the PY and the limitation year? If this is true, defining the limitation year the same as the plan year would seem more practical, but I was wondering if there was anything in the law that prevents an employer from having two plans with different limitation years. I know this would be difficult to keep track of, and I can't say I'm sure how their CPA would take deductions if contributions to both plans would be allowed some time in the future, but we're trying to find the simplest way for them to make contributions while their DB plan is fully funded. All help is greatly appreciated.

Have a friend who is teaching probability and statistics and I mentioned to her that there was approximately a 50% chance that a person would live to life expectancy. She asked could I prove it. Being immersed in libation, nothing came to mind and I didn't care to reinvent a wheel. Can anyone point to a demonstration (e.g., society transactions, book on life contingencies) of this intuitive conclusion?

So if I understand the rules correctly, if we don't have the AFTAP done by 12/31/07 for 2007 then 1/1/08 we are deemed to have a 60% AFTAP for contingent events and amendment purposes, but under a transitional rule don't have benefit restrictions (e.g., lump sums) until 4/1/08 (calendar plan assumed). So for those of us stubborn or slow to change to BOY vals, with little hope of getting all 2007 vals done for AFTAP purposes by 12/31/07, are we SOL ?? Any friends out there sharing these woes ?? Do we still have hope for divine intervention by IRS for EOY vals that might relax these rules and/or a Congressional delay on these rules ? Misery loves company, so I'm looking for friends out there if anyone is in this situation too, and if so, what if anything are you doing about this at this point ? Maybe there isn't much to be done except for whatever few frantic Vals/AFTAP could get done by 12/31/07.